UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM N-CSR

CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT

INVESTMENT COMPANIES

Investment Company Act file number: 811-02688

 

Name of Fund:   BlackRock Municipal Bond Fund, Inc.
       BlackRock Impact Municipal Fund

 

Fund Address:    100   Bellevue Parkway, Wilmington, DE 19809

Name and address of agent for service: John M. Perlowski, Chief Executive Officer, BlackRock Municipal
Bond Fund, Inc., 55 East 52nd Street, New York, NY 10055

Registrant’s telephone number, including area code: (800) 441-7762

Date of fiscal year end: 05/31/2023

Date of reporting period: 11/30/2022


Item 1 – Report to Stockholders

(a) The Report to Shareholders is attached herewith.


 

LOGO

  NOVEMBER 30, 2022

 

 

    

  

2022 Semi-Annual Report

(Unaudited)

 

 

 

BlackRock California Municipal Series Trust

·  BlackRock California Municipal Opportunities Fund

BlackRock Multi-State Municipal Series Trust

·  BlackRock New Jersey Municipal Bond Fund

·  BlackRock Pennsylvania Municipal Bond Fund

BlackRock Municipal Bond Fund, Inc.

·  BlackRock Impact Municipal Fund

BlackRock Municipal Series Trust

·  BlackRock Strategic Municipal Opportunities Fund

 

 

 

 

 

 

Not FDIC Insured • May Lose Value • No Bank Guarantee

 


The Markets in Review

Dear Shareholder,

Significant economic headwinds emerged during the 12-month reporting period ended November 30, 2022, disrupting the economic recovery and strong financial markets of 2021. The U.S. economy shrank in the first half of 2022 before returning to moderate growth in the third quarter, marking a shift to a more challenging post-reopening economic environment. Changes in consumer spending patterns and a tight labor market led to elevated inflation, which reached a 40-year high before beginning to moderate. Moreover, while the foremost effect of Russia’s invasion of Ukraine has been a severe humanitarian crisis, the ongoing war continued to present challenges for both investors and policymakers.

Equity prices fell as interest rates rose, particularly weighing on relatively high-valuation growth stocks as inflation decreased the value of future cash flows and investors shifted focus to balance sheet resilience. Both large- and small-capitalization U.S. stocks fell, although declines for small-capitalization U.S. stocks were slightly steeper. Emerging market stocks and international equities from developed markets also declined significantly, pressured by rising interest rates and a strengthening U.S. dollar.

The 10-year U.S. Treasury yield rose notably during the reporting period, driving its price down, as investors reacted to higher inflation and attempted to anticipate its impact on future interest rate changes. The corporate bond market also faced inflationary headwinds, and increasing uncertainty led to higher corporate bond spreads (the difference in yield between U.S. Treasuries and similarly-dated corporate bonds).

The U.S. Federal Reserve (the “Fed”), acknowledging that inflation has been more persistent than expected, raised interest rates six times. Furthermore, the Fed wound down its bond-buying programs and is accelerating the reduction of its balance sheet. While the Fed suggested that additional rate hikes were likely, it also gave indications that the pace of increases would slow if inflation continued to subside.

The pandemic’s restructuring of the economy brought an ongoing mismatch between supply and demand, contributing to the current inflationary regime. While growth has slowed in 2022, we believe that taming inflation requires a more dramatic economic decline to bring demand back to a lower level that is more in line with the economy’s capacity. The Fed has been raising interest rates at the fastest pace in decades, and seems set to overtighten in its effort to get inflation back to target. With this in mind, we believe the possibility of a U.S. recession in the near-term is high, but this prospect has not yet been fully priced in by markets. Investors should expect a period of higher volatility as markets adjust to the new economic reality and policymakers attempt to adapt to rapidly changing conditions.

In this environment, while we favor an overweight to equities in the long-term, the market’s concerns over excessive rate hikes from central banks moderate our outlook. Rising input costs and a deteriorating economic backdrop are likely to challenge corporate earnings, so we are underweight equities overall in the near term. However, we see better opportunities in credit, where valuations are attractive and higher yields provide income opportunities. We believe that global investment-grade corporates, global inflation-linked bonds, and U.S. mortgage-backed securities offer strong opportunities for a six- to twelve-month horizon.

Overall, our view is that investors need to think globally, position themselves to be prepared for a decarbonizing economy, and be nimble as market conditions change. We encourage you to talk with your financial advisor and visit blackrock.com for further insight about investing in today’s markets.

Sincerely,

LOGO

Rob Kapito

President, BlackRock Advisors, LLC

LOGO

Rob Kapito

President, BlackRock Advisors, LLC

 

Total Returns as of November 30, 2022
     6-Month     12-Month  
   

U.S. large cap equities
(S&P 500® Index)

  (0.40)%     (9.21)%
   

U.S. small cap equities
(Russell 2000® Index)

   1.98      (13.01)  
   

International equities
(MSCI Europe, Australasia, Far East Index)

  (3.59)     (10.14)  
   

Emerging market equities
(MSCI Emerging Markets Index)

  (8.15)     (17.43)  
   

3-month Treasury bills
(ICE BofA 3-Month U.S. Treasury Bill Index)

   0.98         1.11   
   

U.S. Treasury securities
(ICE BofA 10-Year U.S. Treasury Index)

  (5.33)     (15.69)  
   

U.S. investment grade bonds
(Bloomberg U.S. Aggregate Bond Index)

  (4.06)     (12.84)  
   

Tax-exempt municipal bonds
(Bloomberg Municipal Bond Index)

  (1.43)       (8.64)  
   

U.S. high yield bonds
(Bloomberg U.S. Corporate High Yield 2% Issuer Capped Index)

  (2.87)       (8.95)  
Past performance is not an indication of future results. Index performance is shown for illustrative purposes only. You cannot invest directly in an index.
 

 

 

2  

T H I S   P A G E   I S   N O T   P A R T   O F   Y O U R   F U N D   R E P O R T


Table of Contents

 

 

      Page

The Markets in Review

   2

Semi-Annual Report:

  

Fund Summary

   4

About Fund Performance

   19

Disclosure of Expenses

   20

The Benefits and Risks of Leveraging

   21

Derivative Financial Instruments

   21

Financial Statements:

  

Schedules of Investments

   22

Statements of Assets and Liabilities

   62

Statements of Operations

   66

Statements of Changes in Net Assets

   68

Financial Highlights

   71

Notes to Financial Statements

   96

Statement Regarding Liquidity Risk Management Program

   110

Additional Information

   111

Glossary of Terms Used in this Report

   113

 

 

 

 

LOGO

 

 

  3


Fund Summary      as of November 30, 2022     BlackRock California Municipal Opportunities Fund

 

Investment Objective

BlackRock California Municipal Opportunities Fund’s (the “Fund”) investment objective is to provide shareholders with income exempt from Federal and California income taxes.

Portfolio Management Commentary

How did the Fund perform?

For the six-month period ended November 30, 2022, the Fund’s Class K Shares outperformed its primary benchmark, a customized weighted index comprised of 85% Bloomberg Municipal Bond: California Exempt Total Return Index Unhedged USD/10% California Bloomberg Municipal Bond: High Yield (non-Investment Grade) Total Return Index/5% Bloomberg Municipal Index California Taxable Bonds Total Return Index Value (the “California Customized Reference Benchmark”), while the Fund’s Investor A and Investor C Shares underperformed its primary benchmark and the Fund’s Institutional and Investor A1 Shares performed in line. For the same period, the Fund’s Institutional and Class K Shares outperformed its secondary benchmark, the Bloomberg Municipal Bond Index, while the Investor A1 Shares performed in line. For the same period, the Fund’s Investor A and Investor C Shares underperformed its secondary benchmark. The following discussion of relative performance pertains to the California Customized Reference Benchmark.

What factors influenced performance?

Both the national and California municipal markets posted modestly negative returns during the period, as the benefit of income was offset by the effect of falling prices. Bonds, in general, remained under pressure from the combination of high inflation and continued interest rate increases by the Fed.

In terms of the Fund’s relative performance, the investment adviser’s use of U.S. Treasury futures to manage interest rate risk was the strongest contributor to performance in the rising rate environment. The Fund’s cash position, while limited, also contributed at a time of broader market weakness. Security selection in the school districts sector was an additional contributor of note.

On the other hand, the Fund’s holdings in longer-maturity and longer-duration securities detracted from results. (Duration is a measure of interest rate sensitivity.) Its holdings in high-yield (non- investment-grade) bonds also lagged given that yield spreads widened. Specifically, the workforce housing sector—which makes up a large portion of the Fund’s high yield position—experienced poor performance. At the individual security level, Puerto Rico Electric Power Authority was a particularly weak performer as the territory’s financial picture remained challenged.

The Fund’s holdings in taxable and corporate-backed securities also detracted. Selection in state general obligation debt further detracted, as did an overweight in the utilities sector.

The Fund’s use of leverage, while augmenting income, hurt results by amplifying the effect of falling prices.

Describe recent portfolio activity.

The Fund continued to seek a balance of competitive total return and tax-free income using an active strategy designed to capitalize on credit, yield curve and interest rate trends.

The investment adviser actively adjusted the portfolio’s positioning in response to the shifting market environment. Most notably, the Fund’s cash reserves were put to work in an effort to capitalize on falling prices and widening yield spreads. It also sought to harvest tax losses where appropriate and redeploy the proceeds into higher-yielding securities.

Describe portfolio positioning at period end.

The Fund’s duration was 6.9 years, 0.5 years below the index and down from 9.0 on May 31, 2021. The underweight to duration was largely achieved through the use of the interest-rate risk management strategies.

The Fund maintained a high-quality bias, with an average credit rating of AA. However, the Fund held 13.4% of its assets in high yield bonds. At the close of the period, 12.5% of the portfolio was subject to the alternative minimum tax and 5% was invested in taxable securities.

The views expressed reflect the opinions of BlackRock as of the date of this report and are subject to change based on changes in market, economic or other conditions. These views are not intended to be a forecast of future events and are no guarantee of future results.

 

 

4  

2 0 2 2   B L A C K R O C K   S E M I - A N N U A L   R E P O R T   T O   S H A R E H O L D E R S


Fund Summary      as of November 30, 2022 (continued)    BlackRock California Municipal Opportunities Fund

 

Performance

 

                            Average Annual Total Returns(a)(b)  
         

 

 

 
                            1 Year         5 Years         10 Years  
         

 

 

     

 

 

     

 

 

 
            Standardized
30-Day Yields
    Unsubsidized
30-Day Yields
   

6-Month

Total

Returns

   

Without

Sales

Charge

   

With

Sales

Charge

         Without
Sales
Charge
    With
Sales
Charge
         Without
Sales
Charge
    With
Sales
Charge
 

Institutional

      3.56     3.54     (1.37 )%      (8.11 )%      N/A         1.21     N/A         2.04     N/A  

Investor A

      3.18       3.16       (1.50     (8.27     (12.17 )%        0.96       0.09       1.81       1.36

Investor A1

      3.33       3.31       (1.42     (8.12     N/A         1.12       N/A         1.96       N/A  

Investor C

      2.58       2.56       (1.87     (9.03     (9.92       0.20       0.20         1.20       1.20  

Class K

      3.60       3.57       (1.27     (7.98     N/A         1.27       N/A         2.08       N/A  

California Customized Reference Benchmark(c)

                  (1.39     (9.58     N/A         1.37       N/A         N/A       N/A  

Bloomberg Municipal Bond Index(d)

                        (1.43     (8.64     N/A           1.40       N/A           1.98       N/A  

 

  (a) 

Assuming maximum sales charges, if any. Average annual total returns with and without sales charges reflect reductions for distribution and service fees. See “About Fund Performance” for a detailed description of share classes, including any related sales charges and fees, and how performance was calculated for certain share classes.

 
  (b) 

Under normal circumstances, the Fund will invest at least 80% of its assets in California municipal bonds. The Fund’s returns prior to January 26, 2015 are the returns of the Fund when it followed different investment strategies under the name BlackRock California Municipal Bond Fund.

 
  (c) 

Acustomized weighted index comprised of 85% Bloomberg Municipal Bond: California Exempt Total Return Index Unhedged USD/10% California Bloomberg Municipal Bond: High Yield (non-Investment Grade) Total Return Index/5% Bloomberg Municipal Index California Taxable Bonds Total Return Index Value (the “California Customized Reference Benchmark”). The California Customized Reference Benchmark commenced on September 30, 2016.

 
  (d) 

An unmanaged index that tracks the U.S. long term tax-exempt bond market, including state and local general obligation bonds, revenue bonds, pre-refunded bonds, and insured bonds.

 

N/A— Not applicable as the share class and index do not have a sales charge.

Past performance is not an indication of future results.

Performance results may include adjustments made for financial reporting purposes in accordance with U.S. generally accepted accounting principles.

Expense Example

 

        Actual           Hypothetical 5% Return                    
   

 

 

     

 

 

       
                   

Expenses Paid During the

Period

               

Including Interest

Expense

and Fees

   

Excluding Interest

Expense

and Fees

          Annualized Expense Ratio  
       

 

 

       

 

 

   

 

 

     

 

 

 
       


Beginning
Account
Value
(06/01/22)
 
 
 
 
   


Ending
Account
Value
(11/30/22)
 
 
 
 
   


Including
Interest
Expense
and Fees
 
 
 
(a) 
   


Excluding
Interest
Expense
and Fees
 
 
 
(a) 
           


Beginning
Account
Value
(06/01/22)
 
 
 
 
   


Ending
Account
Value
(11/30/22)
 
 
 
 
   



Expenses
Paid
During
the
Period
 
 
 
 
(a)  
   


Ending
Account
Value
(11/30/22)
 
 
 
 
   


Expenses
Paid
During the
Period
 
 
 
(a)  
           


Including
Interest
Expense
and Fees
 
 
 
 
   


Excluding
Interest
Expense
and Fees
 
 
 
 
 

Institutional

    $  1,000.00       $  986.30       $      3.04       $      2.19       $ 1,000.00       $ 1,022.01       $      3.09     $ 1,022.86     $ 2.23         0.61     0.44

    

 

Investor A

    1,000.00       985.00       4.28       3.38         1,000.00       1,020.76       4.36       1,021.66       3.44         0.86       0.68  
 

Investor A1

    1,000.00       985.80       3.48       2.64         1,000.00       1,021.56       3.55       1,022.41       2.69         0.70       0.53  
 

Investor C

    1,000.00       981.30       8.00       7.15         1,000.00       1,017.00       8.14       1,017.85       7.28         1.61       1.44  
 

Class K

    1,000.00       987.30       2.79       1.94               1,000.00       1,022.26       2.84       1,023.11       1.98               0.56       0.39  

 

  (a) 

For each class of the Fund, expenses are equal to the annualized expense ratio for the class, multiplied by the average account value over the period, multiplied by 183/365 (to reflect the one-half year period shown).

 

See “Disclosure of Expenses” for further information on how expenses were calculated.

 

 

F U N D   S U M M A R Y

  5


Fund Summary      as of November 30, 2022 (continued)    BlackRock California Municipal Opportunities Fund

 

Portfolio Information

 

SECTOR ALLOCATION

   
Sector(a)(b)  

Percent of

Total Investments

 

Utilities

    30.9

County/City/Special District/School District

    20.8  

Transportation

    13.7  

State

    11.3  

Education

    9.8  

Health

    6.4  

Housing

    3.8  

Tobacco

    1.9  

Corporate

    1.4  

Health Care Providers & Services

    (c) 

CALL/MATURITY SCHEDULE

   
Calendar Year Ended December 31,(a)(d)   Percentage  

2022

    0.3

2023

    3.1  

2024

    0.9  

2025

    0.6  

2026

    11.3  

CREDIT QUALITY ALLOCATION

   
Credit Rating(a)(e)  

Percent of

Total Investments

 

AAA/Aaa

    14.5

AA/Aa

    61.5  

A

    9.9  

BBB/Baa

    1.1  

BB/Ba

    0.2  

CCC/Caa

    0.1  

N/R(f)

    12.7  
 
(a) 

Excludes short-term securities.

(b)

For Fund compliance purposes, the Fund’s sector classifications refer to one or more of the sector sub-classifications used by one or more widely recognized market indexes or rating group indexes, and/or as defined by the investment adviser. These definitions may not apply for purposes of this report, which may combine such sector sub-classifications for reporting ease.

(c) 

Rounds to less than 0.1%.

(d) 

Scheduled maturity dates and/or bonds that are subject to potential calls by issuers over the next five years.

(e) 

For financial reporting purposes, credit quality ratings shown above reflect the highest rating assigned by either S&P Global Ratings or Moody’s Investors Service, Inc. if ratings differ. These rating agencies are independent, nationally recognized statistical rating organizations and are widely used. Investment grade ratings are credit ratings of BBB/Baa or higher. Below investment grade ratings are credit ratings of BB/Ba or lower. Investments designated N/R are not rated by either rating agency. Unrated investments do not necessarily indicate low credit quality. Credit quality ratings are subject to change.

(f) 

The investment adviser evaluates the credit quality of unrated investments based upon certain factors including, but not limited to, credit ratings for similar investments and financial analysis of sectors and individual investments. Using this approach, the investment adviser has deemed certain of these unrated securities as investment grade quality. As of November 30, 2022, the market value of unrated securities deemed by the investment adviser to be investment grade represents less than 1.0% of the Fund’s total investments.

 

 

6  

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Fund Summary      as of November 30, 2022    BlackRock New Jersey Municipal Bond Fund

 

Investment Objective

BlackRock New Jersey Municipal Bond Fund’s (the “Fund”) investment objective is to provide shareholders with income exempt from Federal income tax and New Jersey personal income taxes.

Portfolio Management Commentary

How did the Fund perform?

For the six-month period ended November 30, 2022, the Fund underperformed its primary benchmark, a customized weighted index comprised of 90% Bloomberg Municipal Bond: New Jersey Exempt Total Return Index Unhedged USD/10% New Jersey Bloomberg Municipal Bond: High Yield (non-Investment Grade) Total Return Index (the “New Jersey Customized Reference Benchmark”), as well as its secondary benchmark, the Bloomberg Municipal Bond Index. The following discussion of relative performance pertains to the New Jersey Customized Reference Benchmark.

What factors influenced performance?

Both the national and New Jersey municipal markets posted modestly negative returns for the reporting period, as the benefit of income was offset by the effect of falling prices. Bonds, in general, remained under pressure from the combination of high inflation and continued interest rate increases by the Fed.

The Fund’s overweight to duration and holdings in longer-term bonds were key detractors from relative performance, as were overweight allocations to the corporate-backed, healthcare and state tax-backed sectors. (Duration is a measure of interest rate sensitivity.) Within the tax-backed states sector, the Fund held an out-of-benchmark allocation to Puerto Rico.

On the positive side, holdings in cash and pre-refunded bonds contributed due to their low duration and the higher yields available on short-term investments following the Fed’s long series of interest rate hikes. Underweights in the transportation and high yield tobacco sectors helped relative performance, as well. The Fund used U.S. Treasury futures to manage interest-rate risk, which was also additive to performance given that yields rose.

Describe recent portfolio activity.

The investment adviser’s activity was focused on reducing the portfolio’s duration. It achieved this by selling long-term issues, eliminating leverage, selling bonds with lower coupons and raising cash levels. In addition, it sought to harvest tax losses and swap into higher-yielding securities. While these steps led to a meaningful reduction in duration, the Fund was nonetheless slightly overweight to duration at the close of the period. The Fund also continued to have an overweight in long-term bonds. At the sector level, the Fund’s weightings in airports increased, while its holdings in lower-coupon general obligation bonds declined.

Describe portfolio positioning at period end.

The Fund’s cash weighting stood at 8%, above typical levels. The investment adviser maintained an elevated cash position to help preserve capital in a time of heightened volatility and poor market performance. In addition, cash started to provide a source of income as the Fed aggressively raised interest rates.

The Fund maintained underweights in airport and toll road issues, both of which have large index weightings. Conversely, it was overweight in local general obligations, charter schools, school districts and hospitals. The Fund was overweight in bonds with maturities of 20 years and longer to capture their higher income, and it was underweight in shorter maturities. The Fund maintained a barbell approach to credit positioning, with overweights in AAAs, AAs and non-rated bonds, together with underweights in As and BBBs.

The views expressed reflect the opinions of BlackRock as of the date of this report and are subject to change based on changes in market, economic or other conditions. These views are not intended to be a forecast of future events and are no guarantee of future results.

 

 

F U N D   S U M M A R Y

  7


Fund Summary      as of November 30, 2022 (continued)    BlackRock New Jersey Municipal Bond Fund

 

Performance    

 

                                   Average Annual Total Returns(a)(b)      
                

 

 

   
                                   1 Year            5 Years            10 Years      
                

 

 

        

 

 

        

 

 

   
        

Standardized

30-Day Yields

    

Unsubsidized

30-Day Yields

    

6-Month

Total

Returns

             

Without

Sales

Charge

    

With

Sales

Charge

          

Without

Sales

Charge

      

With

Sales

Charge

             

Without

Sales

Charge

      

With

Sales

Charge

   

    

 

Institutional

    3.41      3.22      (2.20 )%           (10.18 )%       N/A            1.22        N/A            1.99        N/A    
 

Service

    3.17        2.98        (2.32          (10.40      N/A            0.97          N/A            1.79          N/A    
 

Investor A

    3.03        2.89        (2.32          (10.39      (14.19 )%           0.97          0.10          1.79          1.35  

    

 

Investor A1

    3.18        3.04        (2.24          (10.16      N/A            1.14          N/A            1.95          N/A    
 

Investor C

    2.43        2.28        (2.69          (11.07      (11.94          0.22          0.22            1.17          1.17    
 

Class K

    3.46        3.32        (2.17          (10.13      N/A            1.27          N/A            2.01          N/A    
 

New Jersey Customized Reference Benchmark(c)

                  (0.89          (8.54      N/A            2.37          N/A            N/A          N/A    
 

Bloomberg Municipal Bond Index(d)

                  (1.43            (8.64      N/A              1.40          N/A              1.98          N/A    

 

  (a) 

Assuming maximum sales charges, if any. Average annual total returns with and without sales charges reflect reductions for distribution and service fees. See “About Fund Performance” for a detailed description of share classes, including any related sales charges and fees, and how performance was calculated for certain share classes.

 
  (b)

Under normal circumstances, the Fund will invest at least 80% of its assets in New Jersey municipal bonds.

 
  (c) 

A customized weighted index comprised of 90% Bloomberg Municipal Bond: New Jersey Exempt Total Return Index Unhedged USD/10% New Jersey Bloomberg Municipal Bond: High Yield (non-Investment Grade) Total Return Index (the “New Jersey Customized Reference Benchmark”). The New Jersey Customized Reference Benchmark commenced on September 30, 2016.

 
  (d) 

An unmanaged index that tracks the U.S. long term tax-exempt bond market, including state and local general obligation bonds, revenue bonds, pre-refunded bonds, and insured bonds.

 

N/A— Not applicable as the share class and index do not have a sales charge.

Past performance is not an indication of future results.

Performance results may include adjustments made for financial reporting purposes in accordance with U.S. generally accepted accounting principles.

Expense Example

 

         Actual           Hypothetical 5% Return                  
                    

Expenses Paid During the

Period

               

Including Interest

Expense

and Fees

         

Excluding Interest

Expense

and Fees

          Annualized Expense Ratio      
        

 

 

       

 

 

     

 

 

     

 

 

   
        

Beginning

Account

Value

(06/01/22

 

 

 

) 

   

Ending

Account

Value

(11/30/22

 

 

 

) 

   

Including

Interest

Expense

and Fees

 

 

 

(a) 

   

Excluding

Interest

Expense

and Fees

 

 

 

(a) 

           

Beginning

Account

Value

(06/01/22

 

 

 

) 

   

Ending

Account

Value

(11/30/22

 

 

 

) 

   

Expenses

Paid

During

the

Period

 

 

 

 

(a)  

           

Ending

Account

Value

(11/30/22

 

 

 

   

Expenses

Paid

During

the

Period

 

 

 

 

(a)  

           

Including

Interest

Expense

and Fees

 

 

 

 

   

Excluding

Interest

Expense

and Fees

 

 

 

 

 

    

 

Institutional

   $  1,000.00     $  978.00     $  2.88     $ 2.58       $ 1,000.00     $ 1,022.16     $ 2.94       $ 1,022.46     $ 2.64         0.58     0.52  
 

Service

     1,000.00       976.80       4.11       3.82         1,000.00       1,020.91       4.20         1,021.21       3.90         0.83       0.77    

    

 

Investor A

     1,000.00       976.80       4.11       3.82         1,000.00       1,020.91       4.20         1,021.21       3.90         0.83       0.77    
 

Investor A1

     1,000.00       977.60       3.37       3.07         1,000.00       1,021.66       3.45         1,021.96       3.14         0.68       0.62    
 

Investor C

     1,000.00       973.10       7.82       7.52         1,000.00       1,017.15       7.99         1,017.45       7.69         1.58       1.52    
 

Class K

     1,000.00       978.30       2.63       2.33               1,000.00       1,022.41       2.69               1,022.71       2.38               0.53       0.47    

 

  (a) 

For each class of the Fund, expenses are equal to the annualized expense ratio for the class, multiplied by the average account value over the period, multiplied by 183/365 (to reflect the one-half year period shown).

 

See “Disclosure of Expenses” for further information on how expenses were calculated.

 

 

8  

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Fund Summary      as of November 30, 2022 (continued)    BlackRock New Jersey Municipal Bond Fund

 

Portfolio Information

 

 

SECTOR ALLOCATION

   
Sector(a)(b)  

Percent of

Total Investments

 

State

    25.0

Transportation

    18.9  

Health

    17.4  

Education

    16.1  

County/City/Special District/School District

    14.8  

Housing

    3.2  

Corporate

    2.9  

Tobacco

    1.4  

Utilities

    0.3  

CALL/MATURITY SCHEDULE

   
Calendar Year Ended December 31,(a)(c)   Percentage  

2022

    4.8

2023

    8.9  

2024

    18.3  

2025

    4.9  

2026

    11.8  

CREDIT QUALITY ALLOCATION

   
Credit Rating(a)(d)  

Percent of

Total Investments

 

AAA/Aaa

    3.3

AA/Aa

    43.7  

A

    40.4  

BBB/Baa

    6.8  

BB/Ba

    0.4  

B

    0.1  

N/R(e)

    5.3  
 

 

(a) 

Excludes short-term securities.

(b) 

For Fund compliance purposes, the Fund’s sector classifications refer to one or more of the sector sub-classifications used by one or more widely recognized market indexes or rating group indexes, and/or as defined by the investment adviser. These definitions may not apply for purposes of this report, which may combine such sector sub-classifications for reporting ease.

(c)

Scheduled maturity dates and/or bonds that are subject to potential calls by issuers over the next five years.

(d)

For financial reporting purposes, credit quality ratings shown above reflect the highest rating assigned by either S&P Global Ratings or Moody’s Investors Service, Inc. if ratings differ. These rating agencies are independent, nationally recognized statistical rating organizations and are widely used. Investment grade ratings are credit ratings of BBB/Baa or higher. Below investment grade ratings are credit ratings of BB/Ba or lower. Investments designated N/R are not rated by either rating agency. Unrated investments do not necessarily indicate low credit quality. Credit quality ratings are subject to change.

(e) 

The investment adviser evaluates the credit quality of unrated investments based upon certain factors including, but not limited to, credit ratings for similar investments and financial analysis of sectors and individual investments. Using this approach, the investment adviser has deemed certain of these unrated securities as investment grade quality. As of November 30, 2022, the market value of unrated securities deemed by the investment adviser to be investment grade represents less than 1.0% of the Fund’s total investments.

 

 

F U N D   S U M M A R Y

  9


Fund Summary      as of November 30, 2022    BlackRock Pennsylvania Municipal Bond Fund

 

Investment Objective

BlackRock Pennsylvania Municipal Bond Fund’s (the “Fund”) investment objective is to provide shareholders with income exempt from Federal income tax and Pennsylvania personal income taxes.

Portfolio Management Commentary

How did the Fund perform?

For the six-month period ended November 30, 2022, the Fund underperformed its primary benchmark, a customized weighted index comprised of 90% Bloomberg Pennsylvania Total Return Index Unhedged USD/10% Pennsylvania Bloomberg Municipal Bond: High Yield (non-Investment Grade) Total Return Index (the “Pennsylvania Customized Reference Benchmark”), as well as its secondary benchmark, the Bloomberg Municipal Bond Index. The following discussion of relative performance pertains to the Pennsylvania Customized Reference Benchmark.

What factors influenced performance?

Both the national and Pennsylvania municipal markets posted modestly negative returns for the reporting period, as the benefit of income was offset by the effect of falling prices. Bonds, in general, remained under pressure from the combination of high inflation and continued interest rate increases by the Fed.

On a sector basis, overweight positions in school districts, higher education, utilities and local tax-backed securities detracted from relative performance. An out-of-benchmark allocation to Puerto Rico detracted, as well. The Fund’s overweight to duration (interest rate sensitivity) and holdings in longer-term bonds were further detractors of note.

On the other hand, an underweight in healthcare—together with a higher-quality bias in the sector—contributed. The investment adviser’s use of U.S. Treasury futures to manage interest rate risk was the strongest contributor to performance in the rising rate environment. The Fund’s cash position, while limited, also contributed at a time of broader market weakness.

Describe recent portfolio activity.

The investment adviser’s activity was focused on reducing the portfolio’s duration. It achieved this by selling long-term issues, eliminating leverage, selling bonds with lower coupons and raising cash levels. In addition, it sought to harvest tax losses and swap into higher-yielding securities. While these steps led to a meaningful reduction in duration, the Fund was nonetheless slightly overweight to duration at the close of the period. The Fund also continued to have an overweight in long-term bonds. At the sector level, the Fund’s weightings in pre-refunded bonds, floating-rate notes and cash increased, while its holdings in hospitals, airports and lease-backed securities declined.

Describe portfolio positioning at period end.

The Fund’s cash weighting stood at 8%, above typical levels. The investment adviser maintained an elevated cash position to help preserve capital in a time of heightened volatility and poor market performance. In addition, cash started to provide a source of income as the Fed aggressively raised interest rates.

The Fund was overweight in longer-term debt. On a sector basis, the Fund was overweight in school districts, private universities and public universities. It was underweight in general obligations, hospitals and toll roads. In terms of credit quality, the portfolio was overweight in high yield bonds and BBBs, and it was underweight in those rated AA and A.

The views expressed reflect the opinions of BlackRock as of the date of this report and are subject to change based on changes in market, economic or other conditions. These views are not intended to be a forecast of future events and are no guarantee of future results.

 

 

10  

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Fund Summary      as of November 30, 2022 (continued)    BlackRock Pennsylvania Municipal Bond Fund

 

Performance

 

                          Average Annual Total Returns(a)(b)      
         

 

 

   
                         

1 Year

          5 Years           10 Years      
         

 

 

     

 

 

     

 

 

   
         Standardized
30-Day Yields
    Unsubsidized
30-Day Yields
    6-Month
Total
Returns
    Without
Sales
Charge
    With
Sales
Charge
           Without
Sales
Charge
    With
Sales
Charge
           Without
Sales
Charge
    With
Sales
Charge
     
 

Institutional

    3.54     3.33     (3.38 )%      (11.46 )%      N/A         0.56     N/A         1.55     N/A    
 

Service

    3.30       3.15       (3.50     (11.67     N/A         0.30       N/A         1.33       N/A    
 

Investor A

    3.16       3.06       (3.50     (11.66     (15.41 )%        0.30       (0.57 )%        1.33       0.89       

    

 

Investor A1

    3.31       3.18       (3.52     (11.61     N/A         0.45       N/A         1.48       N/A    
 

Investor C

    2.56       2.43       (3.86     (12.33     (13.19       (0.43     (0.43       0.71       0.71    
 

Class K

    3.59       3.48       (3.36     (11.41     N/A         0.61       N/A         1.57       N/A    
 

Pennsylvania Customized Reference Benchmark(c)

                (2.13     (9.61     N/A         1.60       N/A         N/A       N/A    
 

Bloomberg Municipal Bond Index(d)

                (1.43     (8.64     N/A               1.40       N/A               1.98       N/A    

 

  (a) 

Assuming maximum sales charges, if any. Average annual total returns with and without sales charges reflect reductions for distribution and service fees. See “About Fund Performance” for a detailed description of share classes, including any related sales charges and fees, and how performance was calculated for certain share classes.

 
  (b) 

Under normal circumstances, the Fund will invest at least 80% of its assets in Pennsylvania municipal bonds.

 
  (c) 

A customized weighted index comprised of 90% Bloomberg Pennsylvania Total Return Index Unhedged USD/10% Pennsylvania Bloomberg Municipal Bond: High Yield (non- Investment Grade) Total Return Index (the “Pennsylvania Customized Reference Benchmark”) .The Pennsylvania Customized Reference Benchmark commenced on September 30, 2016.

 
  (d) 

An unmanaged index that tracks the U.S. long term tax-exempt bond market, including state and local general obligation bonds, revenue bonds, pre-refunded bonds, and insured bonds.

 

N/A— Not applicable as the share class and index do not have a sales charge.

Past performance is not an indication of future results.

Performance results may include adjustments made for financial reporting purposes in accordance with U.S. generally accepted accounting principles.

Expense Example

 

        Actual                 Hypothetical 5% Return                  
   

 

 

       

 

 

       
                    Expenses Paid During
the Period
                Including Interest
Expense
and Fees
    Excluding Interest
Expense
and Fees
    Annualized Expense Ratio         

    

       


Beginning
Account
Value
(06/01/22
 
 
 
)  
   



Ending
Account
Value
(11/30/22
 
 
 

 
   


Including
Interest 

Expense
and Fees

 
 

 
(a) 

   


Excluding
Interest
Expense
and Fees
 
 
 
(a) 
   


Beginning
Account
Value
(06/01/22
 
 
 
)  
           


Ending
Account
Value
(11/30/22
 
 
 
) 
   


Expenses
Paid
During

the
Period

 
 
 

 
(a)  

   


Ending
Account
Value
(11/30/22
 
 
 
) 
   


Expenses
Paid

During

the
Period

 
 

 

 
(a)  

   


Including
Interest
Expense
and Fees
 
 
 
 
   


Excluding
Interest
Expense
and Fees
 
 
 
 
 
 

Institutional

  $  1,000.00     $  966.20     $  3.01     $  2.66     $  1,000.00       $  1,022.01     $ 3.09     $  1,022.36     $  2.74       0.61     0.54  
 

Service

    1,000.00       965.00       4.24       3.89       1,000.00         1,020.76       4.36       1,021.11       4.00       0.86       0.79    
 

Investor A

    1,000.00       965.00       4.19       3.84       1,000.00         1,020.81       4.31       1,021.16       3.95       0.85       0.78    
 

Investor A1

    1,000.00       964.80       3.50       3.15       1,000.00         1,021.51       3.60       1,021.86       3.24       0.71       0.64    
 

Investor C

    1,000.00       961.40       7.92       7.57       1,000.00         1,017.00       8.14       1,017.35       7.79       1.61       1.54    
 

Class K

    1,000.00       966.40       2.76       2.42       1,000.00               1,022.26       2.84       1,022.61       2.48       0.56       0.49    

 

  (a) 

For each class of the Fund, expenses are equal to the annualized expense ratio for the class, multiplied by the average account value over the period, multiplied by 183/365 (to reflect the one-half year period shown).

 

See “Disclosure of Expenses” for further information on how expenses were calculated.

 

 

F U N D   S U M M A R Y

  11


Fund Summary      as of November 30, 2022 (continued)    BlackRock Pennsylvania Municipal Bond Fund

 

Portfolio Information

 

SECTOR ALLOCATION

   
Sector(a)(b)   Percent of
Total Investments
 

Education

    21.2

Health

    19.7  

County/City/Special District/School District

    15.9  

Transportation

    15.7  

Utilities

    9.4  

State

    8.2  

Corporate

    6.0  

Housing

    3.9  

CALL/MATURITY SCHEDULE

   
Calendar Year Ended December 31,(a)(c)   Percentage  

2022

    2.3

2023

    8.7  

2024

    2.3  

2025

    10.6  

2026

    6.2  

CREDIT QUALITY ALLOCATION

   
Credit Rating(a)(d)   Percent of
Total Investments
 

AAA/Aaa

    0.3

AA/Aa

    44.3  

A

    30.5  

BBB/Baa

    4.2  

BB/Ba

    3.9  

B

    0.5  

N/R(e)

    16.3  
 

 

(a) 

Excludes short-term securities.

(b) 

For Fund compliance purposes, the Fund’s sector classifications refer to one or more of the sector sub-classifications used by one or more widely recognized market indexes or rating group indexes, and/or as defined by the investment adviser. These definitions may not apply for purposes of this report, which may combine such sector sub-classifications for reporting ease.

(c) 

Scheduled maturity dates and/or bonds that are subject to potential calls by issuers over the next five years.

(d)

For financial reporting purposes, credit quality ratings shown above reflect the highest rating assigned by either S&P Global Ratings or Moody’s Investors Service, Inc. if ratings differ. These rating agencies are independent, nationally recognized statistical rating organizations and are widely used. Investment grade ratings are credit ratings of BBB/Baa or higher. Below investment grade ratings are credit ratings of BB/Ba or lower. Investments designated N/R are not rated by either rating agency. Unrated investments do not necessarily indicate low credit quality. Credit quality ratings are subject to change.

(e) 

The investment adviser evaluates the credit quality of unrated investments based upon certain factors including, but not limited to, credit ratings for similar investments and financial analysis of sectors and individual investments. Using this approach, the investment adviser has deemed certain of these unrated securities as investment grade quality. As of November 30, 2022, the market value of unrated securities deemed by the investment adviser to be investment grade represents less than 1.0% of the Fund’s total investments.

 

 

12  

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Fund Summary      as of November 30, 2022     BlackRock Impact Municipal Fund

 

Investment Objective

BlackRock Impact Municipal Fund’s (the “Fund”) investment objective is to seek to maximize income exempt from Federal income taxes while investing in municipal bonds the proceeds of which Fund management views as generating positive social and environmental impacts.

Portfolio Management Commentary

How did the Fund perform?

For the six-month period ended November 30, 2022, the Fund outperformed its primary benchmark, a customized weighted index comprised of 65% Bloomberg Municipal Bond Index and 35% Bloomberg Municipal High Yield Bond Index (the “Customized Reference Benchmark”) and one of its secondary benchmarks, the Bloomberg Municipal High Yield Bond Index. For the same period, the Fund underperformed its other secondary benchmark, the Bloomberg Municipal Bond Index. The following discussion of relative performance pertains to the Customized Reference Benchmark.

What factors influenced performance?

Municipal bonds posted modestly negative returns in the semiannual period, as the benefit of income was offset by the effect of falling prices. Bonds, in general, remained under pressure from the combination of high inflation and continued interest rate increases by the Fed.

In terms of the Fund’s relative performance, the investment adviser’s use of U.S. Treasury futures to manage interest rate risk was the strongest contributor in the rising rate environment. The Fund’s overweight in higher-rated bonds and corresponding underweight in lower-rated issues also contributed to performance. Security selection in the education sector was an additional contributor. The Fund’s cash position, while not a core aspect of its strategy, further helped results at a time of broader market weakness.

On the other hand, holdings in 4% coupon bonds—which underperformed due to their higher interest rate sensitivity—detracted. The Fund’s yield curve positioning also hurt results due to the underperformance of its holdings in securities with maturities of 25 years and longer. In addition, an above-benchmark duration (interest-rate sensitivity) detracted at a time of rising rates.

Describe recent portfolio activity.

As municipal yields rose, the investment adviser shifted the portfolio’s holdings toward higher-coupon issues (5% and above) and away from those with lower coupons (largely 4%).

Describe portfolio positioning at period end.

The Fund’s cash position was slightly elevated at the end of November 2022. This reflected the investment adviser’s decision to harvest tax losses by rotating out of lower-yielding and lower-coupon securities. The investment adviser also sought to keep some cash on hand to redeploy in the event of further market weakness.

The Fund was positioned with an overweight to duration and overweights in both investment-grade bonds and issues with maturities of 20 years and longer. The Fund was underweight in non- investment-grade bonds. Its leading sector overweights included utilities, housing and education, while its largest underweights were in state tax-backed and transportation issues.

The views expressed reflect the opinions of BlackRock as of the date of this report and are subject to change based on changes in market, economic or other conditions. These views are not intended to be a forecast of future events and are no guarantee of future results.

 

 

F U N D   S U M M A R Y

  13


Fund Summary      as of November 30, 2022 (continued)    BlackRock Impact Municipal Fund

 

Performance

 

                        Total Returns(a)(b)  
                       

Since

Inception(c)

 
         

 

 

 
     Standardized
30-Day Yields
     Unsubsidized
30-Day Yields
     6-Month
Total
Returns
    Without
Sales
Charge
    With
Sales
Charge
 

Institutional

    3.57      3.00      (2.30 )%      (3.88 )%      N/A  

Investor A

    3.18        2.64        (2.43     (4.05     (8.13 )% 

Class K

    3.59        3.00        (2.29     (3.85     N/A  

Customized Reference Benchmark(d)

                  (2.50     (5.61     N/A  

Bloomberg Municipal Bond Index(e)

                  (1.43     (4.13     N/A  

Bloomberg Municipal High Yield Bond Index(f)

                  (4.50     (8.36     N/A  

 

  (a) 

Assuming maximum sales charges, if any. Total returns with and without sales charges reflect reductions for distribution and service fees. See “About Fund Performance” for a detailed description of share classes, including any related sales charges and fees.

 
  (b) 

Under normal circumstances, the Fund invests 80% of its net assets, plus any borrowings for investment purposes, in municipal bonds and derivatives with similar economic characteristics.

 
  (c) 

The Fund commenced operations on March 14, 2022.

 
  (d) 

A customized weighted index comprised of 65% Bloomberg Municipal Bond Index/35% Bloomberg Municipal High Yield Bond Index (the “Customized Reference Benchmark”).

 
  (e) 

An unmanaged index that tracks the U.S. long term tax-exempt bond market, including state and local general obligation bonds, revenue bonds, pre-refunded bonds, and insured bonds.

 
  (f) 

An index designed to measure the performance of U.S. dollar-denominated high-yield municipal bonds issued by U.S. states, the District of Columbia, U.S. territories and local governments or agencies.

 

N/A — Not applicable as the share class and index do not have a sales charge.

Past performance is not an indication of future results.

Performance results may include adjustments made for financial reporting purposes in accordance with U.S. generally accepted accounting principles.

Expense Example

 

    Actual     Hypothetical 5% Return        
     

Beginning
Account Value
(06/01/22
 
 
)  
   

Ending
Account Value
(11/30/22
 
 
)  
   

Expenses
Paid During
the Period
 
 
(a) 
   

Beginning
Account Value
(06/01/22
 
 
)  
   

Ending
Account Value
(11/30/22
 
 
)  
   

Expenses
Paid During
the Period
 
 
(a) 
   

Annualized
Expense
Ratio
 
 
 

Institutional

  $  1,000.00     $  977.00     $  2.78     $  1,000.00     $  1,022.26     $  2.84       0.56

Investor A

    1,000.00       975.70       4.01       1,000.00       1,021.01       4.10       0.81  

Class K

    1,000.00       977.10       2.63       1,000.00       1,022.41       2.69       0.53  

 

  (a) 

For each class of the Fund, expenses are equal to the annualized expense ratio for the class, multiplied by the average account value over the period, multiplied by 183/365 (to reflect the one-half year period shown).

 

See “Disclosure of Expenses” for further information on how expenses were calculated.

 

 

14  

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Fund Summary      as of November 30, 2022 (continued)    BlackRock Impact Municipal Fund

 

Portfolio Information

 

SECTOR ALLOCATION

   
Sector(a)(b)   Percent of
Total Investments
 

Utilities

    19.4

County/City/Special District/School District

    17.3  

Health

    14.3  

Education

    14.2  

State

    10.7  

Housing

    10.4  

Transportation

    9.0  

Corporate

    4.7  

CALL/MATURITY SCHEDULE

   
Calendar Year Ended December 31,(a)(c)   Percentage  

2022

    3.4

2023

     

2024

     

2025

     

2026

     

CREDIT QUALITY ALLOCATION

   
Credit Rating(a)(d)   Percent of
Total Investments
 

AAA/Aaa

    11.2

AA/Aa

    53.8  

A

    20.0  

BBB/Baa

    6.7  

BB/Ba

    1.1  

B

    0.4  

N/R

    6.8  
 
(a) 

Excludes short-term securities.

(b) 

For Fund compliance purposes, the Fund’s sector classifications refer to one or more of the sector sub-classifications used by one or more widely recognized market indexes or rating group indexes, and/or as defined by the investment adviser. These definitions may not apply for purposes of this report, which may combine such sector sub-classifications for reporting ease.

(c) 

Scheduled maturity dates and/or bonds that are subject to potential calls by issuers over the next five years.

(d) 

For financial reporting purposes, credit quality ratings shown above reflect the highest rating assigned by either S&P Global Ratings or Moody’s Investors Service, Inc. if ratings differ. These rating agencies are independent, nationally recognized statistical rating organizations and are widely used. Investment grade ratings are credit ratings of BBB/Baa or higher. Below investment grade ratings are credit ratings of BB/Ba or lower. Investments designated N/R are not rated by either rating agency. Unrated investments do not necessarily indicate low credit quality. Credit quality ratings are subject to change.

 

 

F U N D   S U M M A R Y

  15


Fund Summary      as of November 30, 2022    BlackRock Strategic Municipal Opportunities Fund

 

Investment Objective

BlackRock Strategic Municipal Opportunities Fund’s (the “Fund”) investment objective is to provide shareholders with a high level of income exempt from Federal income taxes.

Portfolio Management Commentary

How did the Fund perform?

For the six-month period ended November 30, 2022, the Fund underperformed its primary benchmark, a customized weighted index comprised of 72% Bloomberg Municipal Bond Index Total Return Index Value Unhedged/23% Bloomberg Municipal Bond: High Yield (non-Investment Grade) Total Return Index/5% Bloomberg Municipal Index Taxable Bonds Total Return Index Value (the “Customized Reference Benchmark”), as well as its secondary benchmark, the Bloomberg Municipal Bond Index. The following discussion of relative performance pertains to the Customize Reference Benchmark.

What factors influenced performance?

Municipal bonds posted modestly negative returns for the reporting period, as the benefit of income was offset by the effect of falling prices. Bonds, in general, remained under pressure from the combination of high inflation and continued interest rate increases by the Fed.

The Fund’s underperformance was largely driven by its longer duration stance relative to the benchmark. (Duration is a measure of interest-rate sensitivity.) Its overweight allocation to the long end of the yield curve—specifically, holdings in the 12-15 year range and those with maturities of 25 years and above—also detracted. From a credit standpoint, an overweight in AA rated issues hindered performance. Security selection in the housing, utilities and transportation sectors further detracted from results.

The Fund’s use of U.S. Treasury futures to manage interest rate risk was the strongest contributor to performance in the rising rate environment. Security selection in healthcare also contributed, as did allocations to cash and pre-refunded bonds.

Describe recent portfolio activity.

The Fund opened the period with a duration of 6.63 years and closed with a duration of 6.46 years. While the investment adviser maintained a long-duration positioning for much of the period, it took advantage of occasions of market strength to reduce duration. The portfolio’s duration was below that its benchmark at the end of November 2022.

At the beginning of the period, the Fund’s largest sector weightings were in transportation, housing and healthcare. The Fund subsequently increased its allocations to the state tax-backed, school district and housing sectors and decreased its weightings in the local tax-backed and transportation sectors.

With respect to credit tiers, the Fund maintained its largest allocations in AA and A rated bonds within the investment-grade category. About 26% of the Fund’s assets were in high yield (below investment grade) securities, down from 28% at the start of the period, with an overweight allocation to Puerto Rico. The Fund sought to meet redemptions by selling B, BBB and not-rated issues. Conversely, it increased its holdings in AAA and AA rated securities.

The Fund held an allocation of approximately 41% to the long end of the yield curve (bonds with maturities of 20 years and above), down seven percentage points from the beginning of the period. Its weighting in taxable securities was 7.5%, versus 7.6% at the end of May 2022.

The Fund maintained a cash weighting above typical levels in response to continued industry-wide redemptions.

Describe portfolio positioning at period end.

The Fund was overweight in the transportation and housing sectors and underweight in school districts and tax-backed issues. The Fund’s average credit quality was AA-.

The views expressed reflect the opinions of BlackRock as of the date of this report and are subject to change based on changes in market, economic or other conditions. These views are not intended to be a forecast of future events and are no guarantee of future results.

 

 

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Fund Summary      as of November 30, 2022 (continued)    BlackRock Strategic Municipal Opportunities Fund

 

Performance

 

                            Average Annual Total Returns(a)(b)  
         

 

 

 
                            1 Year         5 Years         10 Years  
         

 

 

     

 

 

     

 

 

 
           

Standardized

30-Day Yields

   

Unsubsidized

30-Day Yields

   

6-Month

Total

Returns

   

Without

Sales

Charge

   

With

Sales

Charge

        

Without

Sales

Charge

   

With

Sales

Charge

        

Without

Sales

Charge

   

With

Sales

Charge

 

Institutional

      3.22     3.17     (3.60 )%      (11.40 )%      N/A         0.50     N/A         1.78     N/A  

Investor A

      2.88       2.84       (3.71     (11.60     (15.36 )%        0.26       (0.60 )%        1.55       1.11

Investor A1

      3.11       3.06       (3.55     (11.46     N/A         0.43       N/A         1.71       N/A  

Investor C

      2.26       2.21       (4.08     (12.27     (13.13       (0.48     (0.48       0.94       0.94  

Class K

      3.29       3.24       (3.57     (11.33     N/A         0.57       N/A         1.81       N/A  

Customized Reference Benchmark(c)

                  (2.29     (10.10     N/A         1.74       N/A         N/A       N/A  

Bloomberg Municipal Bond Index (d)

                        (1.43     (8.64     N/A           1.40       N/A           1.98       N/A  

 

  (a) 

Assuming maximum sales charges, if any. Average annual total returns with and without sales charges reflect reductions for distribution and service fees. See “About Fund Performance” for a detailed description of share classes, including any related sales charges and fees, and how performance was calculated for certain share classes.

 
  (b) 

Under normal circumstances the Fund invests at least 80% of its assets in municipal bonds. The Fund’s returns prior to January 27, 2014 are the returns of the Fund when it followed different investment strategies under the name BlackRock Intermediate Municipal Fund.

 
  (c) 

A customized weighted index comprised of 72% Bloomberg Municipal Bond Index Total Return Index Value Unhedged/23% Municipal Bond: High Yield (non-Investment Grade) Total Return Index/5% Bloomberg Municipal Index Taxable Bonds Total Return Index Value (the “Customized Reference Benchmark”). The Customized Reference Benchmark commenced on September 30, 2016.

 
  (d) 

An unmanaged index that tracks the U.S. long term tax-exempt bond market, including state and local general obligation bonds, revenue bonds, pre-refunded bonds, and insured bonds.

 

N/A — Not applicable as the share class and index do not have a sales charge.

Past performance is not an indication of future results.

Performance results may include adjustments made for financial reporting purposes in accordance with U.S. generally accepted accounting principles.

Expense Example

 

        Actual           Hypothetical 5% Return                    
                    Expenses Paid During the
Period
                Including Interest
Expense
and Fees
    Excluding Interest
Expense
and Fees
          Annualized Expense Ratio  
       

Beginning

Account

Value

(06/01/22)

 

 

 

 

   


Ending
Account
Value
(11/30/22)
 
 
 
 
   


Including
Interest
Expense
and Fees
 
 
 
(a) 
   

Excluding

Interest

Expense

and Fees

 

 

 

(a) 

           

Beginning

Account

Value

(06/01/22)

 

 

 

 

   

Ending

Account

Value

(11/30/22)

 

 

 

 

   

Expenses

Paid

During

the

Period

 

 

 

 

(a)  

   

Ending

Account

Value

(11/30/22)

 

 

 

 

   

Expenses

Paid

During

the

Period

 

 

 

 

(a)  

           

Including

Interest

Expense

and Fees

 

 

 

 

   

Excluding

Interest

Expense

and Fees

 

 

 

 

 

Institutional

  $ 1,000.00     $ 964.00     $ 3.89     $ 2.86       $ 1,000.00     $ 1,021.11     $ 4.00     $ 1,022.16     $ 2.94         0.79     0.58

    

 

Investor A

    1,000.00       962.90       4.92       3.89         1,000.00       1,020.05       5.06       1,021.11       4.00         1.00       0.79  
 

Investor A1

    1,000.00       964.50       4.24       3.20         1,000.00       1,020.76       4.36       1,021.81       3.29         0.86       0.65  
 

Investor C

    1,000.00       959.20       8.69       7.66         1,000.00       1,016.19       8.95       1,017.25       7.88         1.77       1.56  
 

Class K

    1,000.00       964.30       3.50       2.46               1,000.00       1,021.51       3.60       1,022.56       2.53               0.71       0.50  

 

  (a) 

For each class of the Fund, expenses are equal to the annualized expense ratio for the class, multiplied by the average account value over the period, multiplied by 183/365 (to reflect the one-half year period shown).

 

See “Disclosure of Expenses” for further information on how expenses were calculated.

 

 

F U N D   S U M M A R Y

  17


Fund Summary      as of November 30, 2022 (continued)        BlackRock Strategic Municipal Opportunities Fund

 

Portfolio Information

 

SECTOR ALLOCATION  
   
Sector(a)(b)  

Percent of

Total Investments

 

Transportation

    20.2

Housing

    15.5  

County/City/Special District/School District

    14.8  

Health

    13.2  

State

    12.4  

Utilities

    11.4  

Education

    8.2  

Corporate

    2.7  

Other*

    1.6  
CALL/MATURITY SCHEDULE  
   
Calendar Year Ended December 31,(a)(c)   Percentage  

2022

    0.6

2023

    7.2  

2024

    5.6  

2025

    4.9  

2026

    6.8  
CREDIT QUALITY ALLOCATION

 

   
Credit Rating(a)(d)  

Percent of

Total Investments

 

AAA/Aaa

    11.7

AA/Aa

    43.4  

A

    12.9  

BBB/Baa

    8.6  

BB/Ba

    3.4  

B

    0.6  

CCC/Caa

    0.2  

N/R(e)

    19.2  

 

 

 

(a) 

Excludes short-term securities.

(b) 

For Fund compliance purposes, the Fund’s sector classifications refer to one or more of the sector sub-classifications used by one or more widely recognized market indexes or rating group indexes, and/or as defined by the investment adviser. These definitions may not apply for purposes of this report, which may combine such sector sub-classifications for reporting ease.

(c) 

Scheduled maturity dates and/or bonds that are subject to potential calls by issuers over the next five years.

(d) 

For financial reporting purposes, credit quality ratings shown above reflect the highest rating assigned by either S&P Global Ratings or Moody’s Investors Service, Inc. if ratings differ. These rating agencies are independent, nationally recognized statistical rating organizations and are widely used. Investment grade ratings are credit ratings of BBB/Baa or higher. Below investment grade ratings are credit ratings of BB/Ba or lower. Investments designated N/R are not rated by either rating agency. Unrated investments do not necessarily indicate low credit quality. Credit quality ratings are subject to change.

(e) 

The investment adviser evaluates the credit quality of unrated investments based upon certain factors including, but not limited to, credit ratings for similar investments and financial analysis of sectors and individual investments. Using this approach, the investment adviser has deemed certain of these unrated securities as investment grade quality. As of November 30, 2022, the market value of unrated securities deemed by the investment adviser to be investment grade represents less than 1.0% of the Fund’s total investments.

* 

Includes one or more investment categories that individually represents less than 1.0% of the Fund’s total investments. Please refer to the Schedule of Investments for details.

 

 

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About Fund Performance

 

Institutional Shares are not subject to any sales charge. These shares bear no ongoing distribution or service fees and are available only to certain eligible investors.

Class K Shares are not subject to any sales charge. These shares bear no ongoing distribution or service fees and are available only to certain eligible investors. For each Fund, except BlackRock Impact Municipal Fund, Class K Shares performance shown prior to the Class K January 25, 2018 inception date is that of Institutional Shares. The performance of the Funds’ Class K Shares, except BlackRock Impact Municipal Fund, would be substantially similar to Institutional Shares because Class K Shares and Institutional Shares invest in the same portfolio of securities and performance would only differ to the extent that Class K Shares and Institutional Shares have different expenses. The actual returns of Class K Shares would have been higher than those of the Institutional Shares because Class K Shares have lower expenses than the Institutional Shares.

Service Shares (available only in BlackRock New Jersey Municipal Bond Fund and BlackRock Pennsylvania Municipal Bond Fund) are not subject to any sales charge. These shares are subject to a service fee of 0.25% per year (but no distribution fee) and are only available to certain eligible investors.

Investor A Shares are subject to a maximum initial sales charge (front-end load) of 4.25% and a service fee of 0.25% per year (but no distribution fee). Certain redemptions of these shares may be subject to a contingent deferred sales charge (“CDSC”) where no initial sales charge was paid at the time of purchase. These shares are generally available through financial intermediaries.

Investor A1 Shares (available only in BlackRock California Municipal Opportunities Fund, BlackRock New Jersey Municipal Bond Fund, BlackRock Pennsylvania Municipal Bond Fund and BlackRock Strategic Municipal Opportunities Fund) are subject to a maximum initial sales charge (front-end load) of 4.00% and a service fee of 0.10% per year (but no distribution fee). Investor A1 Shares for BlackRock Strategic Municipal Opportunities Fund incur a maximum initial sales charge (front-end load) of 1.00% and a service fee of 0.10% per year (but no distribution fee) for BlackRock California Municipal Opportunities Fund, BlackRock New Jersey Municipal Bond Fund and BlackRock Pennsylvania Municipal Bond Fund. The initial sales charge does not apply to current eligible shareholders of Investor A1 Shares of the Funds. Investor A1 Shares are only available for dividend and capital gain reinvestment by existing shareholders, and for purchase by certain eligible employer-sponsored retirement plans and, for BlackRock California Municipal Opportunities Fund only, fee based programs previously approved by the Fund. Certain redemptions of these shares may be subject to a CDSC where no initial sales charge was paid at the time of purchase. However, the CDSC does not apply to redemptions by certain employer-sponsored retirement plans or to redemptions of shares acquired through the reinvestment of dividends and capital gains by existing shareholders and, for BlackRock California Municipal Opportunities Fund only, fee based programs previously approved by the Fund.

Investor C Shares (available only in BlackRock California Municipal Opportunities Fund, BlackRock New Jersey Municipal Bond Fund, BlackRock Pennsylvania Municipal Bond Fund and BlackRock Strategic Municipal Opportunities Fund) are subject to a 1.00% CDSC if redeemed within one year of purchase. In addition, these shares are subject to a distribution fee of 0.75% per year and a service fee of 0.25% per year. These shares are generally available through financial intermediaries. These shares automatically convert to Investor A Shares after approximately eight years.

Past performance is not an indication of future results. Financial markets have experienced extreme volatility and trading in many instruments has been disrupted. These circumstances may continue for an extended period of time and may continue to affect adversely the value and liquidity of each Fund’s investments. As a result, current performance may be lower or higher than the performance data quoted. Refer to blackrock.com to obtain performance data current to the most recent month-end. Performance results do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. Figures shown in the performance table(s) assume reinvestment of all distributions, if any, at net asset value (“NAV”) on the ex-dividend date or payable date, as applicable. Investment return and principal value of shares will fluctuate so that shares, when redeemed, may be worth more or less than their original cost. Distributions paid to each class of shares will vary because of the different levels of service, distribution and transfer agency fees applicable to each class, which are deducted from the income available to be paid to shareholders.

BlackRock Advisors, LLC (the “Manager”), each Fund’s investment adviser, has contractually and/or voluntarily agreed to waive and/or reimburse a portion of each Fund’s expenses. Without such waiver(s) and/or reimbursement(s), each Fund’s performance would have been lower. With respect to each Fund’s voluntary waiver(s), if any, the Manager is under no obligation to waive and/or reimburse or to continue waiving and/or reimbursing its fees and such voluntary waiver(s) may be reduced or discontinued at any time. With respect to each Fund’s contractual waiver(s), if any, the Manager is under no obligation to continue waiving and/or reimbursing its fees after the applicable termination date of such agreement. See the Notes to Financial Statements for additional information on waivers and/or reimbursements.

The standardized 30-day yield includes the effects of any waivers and/or reimbursements. The unsubsidized 30-day yield excludes the effects of any waivers and/or reimbursements.

 

 

A B O U T   F U N D   P E R F O R M A N C E

  19


Disclosure of Expenses

 

Shareholders of each Fund may incur the following charges: (a) transactional expenses, such as sales charges; and (b) operating expenses, including investment advisory fees, service and distribution fees, including 12b-1 fees, acquired fund fees and expenses, and other fund expenses. The expense examples shown (which are based on a hypothetical investment of $1,000 invested at the beginning of the period and held through the end of the period) are intended to assist shareholders both in calculating expenses based on an investment in each Fund and in comparing these expenses with similar costs of investing in other mutual funds.

The expense examples provide information about actual account values and actual expenses. Annualized expense ratios reflect contractual and voluntary fee waivers, if any. In order to estimate the expenses a shareholder paid during the period covered by this report, shareholders can divide their account value by $1,000 and then multiply the result by the number corresponding to their Fund and share class under the heading entitled “Expenses Paid During the Period.”

The expense examples also provide information about hypothetical account values and hypothetical expenses based on a Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses. In order to assist shareholders in comparing the ongoing expenses of investing in these Funds and other funds, compare the 5% hypothetical examples with the 5% hypothetical examples that appear in shareholder reports of other funds.

The expenses shown in the expense examples are intended to highlight shareholders’ ongoing costs only and do not reflect transactional expenses, such as sales charges, if any. Therefore, the hypothetical examples are useful in comparing ongoing expenses only and will not help shareholders determine the relative total expenses of owning different funds. If these transactional expenses were included, shareholder expenses would have been higher.

 

 

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The Benefits and Risks of Leveraging

 

The Funds may utilize leverage to seek to enhance returns and net asset value (“NAV”). However, there is no guarantee that these objectives can be achieved in all interest rate environments.

Each Fund may leverage its assets through the use of proceeds received in tender option bond (“TOB”) transactions, as described in the Notes to Financial Statements. In a TOB Trust transaction, each Fund transfers municipal bonds or other municipal securities into a special purpose entity (a “TOB Trust”). TOB investments generally provide each Fund with economic benefits in periods of declining short-term interest rates but expose each Fund to risks during periods of rising short-term interest rates. Additionally, fluctuations in the market value of municipal bonds deposited into a TOB Trust may adversely affect each Fund’s NAV per share.

In general, the concept of leveraging is based on the premise that the financing cost of leverage, which is based on short-term interest rates, is normally lower than the income earned by each Fund on its longer-term portfolio investments purchased with the proceeds from leverage. To the extent that the total assets of each Fund (including the assets obtained from leverage) are invested in higher-yielding portfolio investments, the Fund’s shareholders benefit from the incremental net income.

The interest earned on securities purchased with the proceeds from leverage is distributed to the Funds’ shareholders, and the value of these portfolio holdings is reflected in each Fund’s per share NAV. However, in order to benefit shareholders, the return on assets purchased with leverage proceeds must exceed the ongoing costs associated with the leverage. If interest and other ongoing costs of leverage exceed a Fund’s return on assets purchased with leverage proceeds, income to shareholders is lower than if the Fund had not used leverage.

Furthermore, the value of each Fund’s portfolio investments generally varies inversely with the direction of long-term interest rates, although other factors can also influence the value of portfolio investments. As a result, changes in interest rates can influence each Fund’s NAV positively or negatively in addition to the impact on each Fund’s performance from leverage. Changes in the direction of interest rates are difficult to predict accurately, and there is no assurance that a Fund’s leveraging strategy will be successful.

The use of leverage also generally causes greater changes in each Fund’s NAV and dividend rates than comparable portfolios without leverage. In a declining market, leverage is likely to cause a greater decline in the NAV of a Fund’s shares than if the Fund was not leveraged. In addition, each Fund may be required to sell portfolio securities at inopportune times or at distressed values in order to comply with regulatory requirements applicable to the use of leverage or as required by the terms of the leverage instruments, which may cause the Funds to incur losses. The use of leverage may limit a Fund’s ability to invest in certain types of securities or use certain types of hedging strategies. Each Fund incurs expenses in connection with the use of leverage, all of which are borne by each Fund’s shareholders and may reduce income.

Derivative Financial Instruments

The Funds may invest in various derivative financial instruments. These instruments are used to obtain exposure to a security, commodity, index, market, and/or other assets without owning or taking physical custody of securities, commodities and/or other referenced assets or to manage market, equity, credit, interest rate, foreign currency exchange rate, commodity and/or other risks. Derivative financial instruments may give rise to a form of economic leverage and involve risks, including the imperfect correlation between the value of a derivative financial instrument and the underlying asset, possible default of the counterparty to the transaction or illiquidity of the instrument. Pursuant to Rule 18f-4 under the 1940 Act, among other things, the Funds must either use derivative financial instruments with embedded leverage in a limited manner or comply with an outer limit on fund leverage risk based on value-at-risk. The Funds’ successful use of a derivative financial instrument depends on the investment adviser’s ability to predict pertinent market movements accurately, which cannot be assured. The use of these instruments may result in losses greater than if they had not been used, may limit the amount of appreciation a Fund can realize on an investment and/or may result in lower distributions paid to shareholders. The Funds’ investments in these instruments, if any, are discussed in detail in the Notes to Financial Statements.

 

 

T H E   B E N E F I T S   A N D   R I S K S   O F   L E V E R A G I N G   /   D E R I V A T I V E   F I N A N C I A L   I N S T R U M E N T S

  21


Schedule of Investments (unaudited) 

November 30, 2022

  

BlackRock California Municipal Opportunities Fund

(Percentages shown are based on Net Assets)

 

Security  

Par

(000)

    Value  

Corporate Bonds

 

 
Education — 0.1%        

Chapman University, 3.00%, 04/01/51

  $ 2,100     $ 1,413,437  

University of Southern California, 3.03%, 10/01/39

    650       517,882  
   

 

 

 
    1,931,319  
Health Care Providers & Services — 0.0%        

Providence St Joseph Health Obligated Group, Series A, 3.93%, 10/01/48

    1,012       797,149  
   

 

 

 

Total Corporate Bonds — 0.1%
(Cost: $3,892,294)

 

    2,728,468  

Municipal Bonds

 

 

California — 80.6%

 

 

Corporate — 1.5%

 

 

California Community Choice Financing Authority, RB, Series B-1, 4.00%, 02/01/52(b)

    37,765       37,244,674  
   

 

 

 
County/City/Special District/School District — 19.0%        

Anaheim City School District, GO, Series A, Class A, Election 2016, 4.00%, 08/01/41

    2,970       2,986,650  

California Infrastructure & Economic Development Bank, Refunding RB, Series A, 1.60%, 10/01/29

    3,575       2,868,895  

Cerritos Community College District, GO, Series A, AMT, 4.00%, 08/01/44

    5,850       5,833,737  

ChiNo.Valley Unified School District, GO, Series B, 4.00%, 08/01/45

    10,100       9,753,004  

City & County of San Francisco California Community Facilities District No. 2014-1, ST

 

 

Series B, 3.78%, 09/01/30

    1,110       1,023,170  

Series B, 3.92%, 09/01/31

    3,410       3,126,278  

Series B, 3.97%, 09/01/32

    1,880       1,708,719  

Series B, 4.02%, 09/01/33

    2,070       1,869,314  

City & County of San Francisco California, GO

 

 

Series 2020, 4.00%, 06/15/45

    2,000       2,005,240  

Series B-1, 4.00%, 06/15/39

    2,010       2,051,205  

Series B-1, 4.00%, 06/15/41

    2,265       2,296,647  

Series D-1, 4.00%, 06/15/41

    1,605       1,627,425  

Series D-1, 4.00%, 06/15/43

    870       876,671  

Series A, AMT, 4.00%, 06/15/36

    5,155       5,199,199  

City & County of San Francisco California, Refunding COP

 

 

Series A, 4.00%, 04/01/41

    3,000       2,954,709  

Series A, 4.00%, 04/01/42

    1,795       1,751,100  

Series A, 4.00%, 04/01/44

    10,000       9,647,530  

City & County of San Francisco, GO 4.00%, 06/15/41

    3,185       3,207,760  

Series D-1, Class D1, 4.00%, 06/15/46

    2,500       2,401,583  

Clovis Unified School District, GO, Series B, Election 2020, 5.00%, 08/01/47

    3,250       3,506,262  

Coast Community College District, GO, Series B, Election 2002, (AGM), 0.00%, 08/01/30(c)

    26,425       20,551,383  

Corona-Norco Unified School District, Refunding GO, Series A, 4.00%, 08/01/36

    5,120       5,200,338  

El Monte Union High School District, GO, Series B, Class B, 4.00%, 06/01/46

    2,830       2,772,565  

Escondido Union School District, GO

 

 

Series B, Election 2014, 4.00%, 08/01/43

    2,150       2,152,187  

Series B, Election 2014, 4.00%, 08/01/47

    8,000       7,815,264  
Security   Par
(000)
    Value  

County/City/Special District/School District (continued)

 

 

Fremont Union High School District, GO, Series A, AMT, 4.00%, 08/01/38

  $ 1,375     $ 1,393,250  

Gilroy Unified School District, GO, 4.00%, 08/01/46

    7,000       6,819,148  

Grossmont-Cuyamaca Community College District, GO, Series C, 4.00%, 08/01/46

    2,905       2,803,444  

Hartnell Community College District, GO, Series A, Class A, Election 2016, 4.00%, 08/01/47

    5,165       4,937,084  

Imperial Irrigation District, RB, (AMBAC), 6.94%, 01/01/26

    7,855       8,065,200  

Los Angeles Community College District, GO

   

Series K, Election 2008, 4.00%, 08/01/37

    4,045       4,127,724  

Series K, Election 2008, 4.00%, 08/01/38

    10,040       10,176,203  

Series K, Election 2008, 4.00%, 08/01/39

    10,000       10,134,850  

Los Angeles Community College District, Refunding GO, 2.11%, 08/01/32

    2,590       2,065,792  

Los Angeles County Metropolitan Transportation Authority Sales Tax Revenue, RB, Class A, 4.00%, 06/01/36

    5,425       5,642,955  

Los Angeles County Metropolitan Transportation Authority, Refunding RB

   

Series A, 5.00%, 07/01/37

    19,235       20,825,696  

Series A, AMT, 4.00%, 06/01/39

    12,770       12,942,906  

Los Angeles County Public Works Financing Authority, Refunding RB, Class A, 4.00%, 12/01/43

    4,600       4,481,918  

Menifee Union School District, GO, Series B, (BAM), 4.00%, 08/01/43

    1,500       1,468,454  

Mount San Antonio Community College District, Refunding GO, Series 2018-A, Election 2018, 4.00%, 08/01/49

    9,425       9,217,264  

Mount San Jacinto Community College District, GO, Series B, Election 2014, 4.00%, 08/01/43

    7,585       7,592,539  

Municipal Improvement Corp. of Los Angeles, Refunding RB, Series B, Class B, 4.00%, 11/01/34

    6,000       6,109,764  

North Orange County Community College District, GO, Series B, GO, 4.00%, 08/01/44

    3,575       3,576,623  

Orange County Local Transportation Authority Sales Tax Revenue, RB, 5.00%, 02/15/39

    2,000       2,176,212  

Orange County Local Transportation Authority, RB, 5.00%, 02/15/40

    5,000       5,426,255  

Palomar Community College District, GO, Series D, Election 2006, 5.25%, 08/01/45

    4,395       4,703,428  

Peralta Community College District, GO

   

Series B, 5.25%, 08/01/42

    3,000       3,355,674  

Series B, 5.50%, 08/01/52

    5,000       5,573,645  

Pomona Unified School District, GO, Series F, (BAM), 4.00%, 08/01/48

    5,000       4,789,670  

San Bernardino County Transportation Authority, Refunding RB

   

Series A, 4.00%, 03/01/38

    3,240       3,354,417  

Series A, 4.00%, 03/01/39

    3,250       3,349,313  

Series A, 4.00%, 03/01/40

    1,255       1,287,937  

San Carlos School District, GO, Election 2012, 4.00%, 10/01/41

    1,500       1,503,465  

San Diego Community College District, Refunding GO, 2.38%, 08/01/33

    5,375       4,271,459  

San Diego County Regional Transportation Commission, RB, Series B, Subordinate, 5.00%, 04/01/45

    3,440       3,722,899  

San Diego County Regional Transportation Commission, Refunding RB, Series A, 4.00%, 04/01/48

    3,775       3,722,848  
 

 

 

22  

2 0 2 2   B L A C K R O C K   S E M I - A N N U A L   R E P O R T   T O   S H A R E H O L D E R S


Schedule of Investments (unaudited) (continued)

November 30, 2022

  

BlackRock California Municipal Opportunities Fund

(Percentages shown are based on Net Assets)

 

Security   Par
(000)
    Value  

County/City/Special District/School District (continued)

 

 

San Diego Public Facilities Financing Authority, Refunding RB, Series A, 5.00%, 10/15/46

  $ 1,000     $ 1,066,696  

San Diego Unified School District, GO

   

Series L, 4.00%, 07/01/49

    1,000       973,064  

Series L-2, 4.00%, 07/01/39

    2,000       2,015,864  

Series N-2, 4.00%, 07/01/46

    10,000       9,812,540  

San Francisco Bay Area Rapid Transit District Sales Tax Revenue, RB, Series A, AMT, 4.00%, 07/01/39

    1,730       1,730,093  

San Francisco Bay Area Rapid Transit District, GO

   

Series A, Election 2016, 5.00%, 08/01/47

    21,675       22,835,978  

Series D1, Election 2016, 4.00%, 08/01/47

    4,750       4,684,502  

San Francisco City & County Redevelopment Agency Successor Agency, Refunding TA

   

Series D, 3.13%, 08/01/28

    1,150       1,026,776  

Series D, 3.25%, 08/01/29

    1,000       881,416  

Series D, 3.38%, 08/01/30

    1,250       1,091,520  

San Francisco City & County Redevelopment Financing Authority, TA, Series A, (BHAC-CR), 5.75%, 08/01/37

    5,000       5,118,585  

San Gabriel Unified School District, GO, Series D, Election 2008, (AGM), 4.00%, 08/01/41

    1,445       1,440,338  

San Joaquin County Transportation Authority, Refunding RB, 5.00%, 03/01/41

    17,955       18,956,458  

San Jose Redevelopment Agency Successor Agency, Refunding TA, Series A-T, 3.25%, 08/01/29

    8,730       7,838,772  

San Jose Unified School District, GO, Series F, Election 2012, 4.00%, 08/01/42

    4,000       4,026,256  

San Jose Unified School District, GO, CAB, Series C, Election 2002, (NPFGC), 0.00%, 06/01/31(c)

    25,000       18,920,025  

San Lorenzo Unified School District, GO, 4.00%, 08/01/40

    1,115       1,113,237  

San Luis Obispo County Financing Authority, Refunding RB, 5.50%, 11/15/47

    5,165       5,710,951  

San Marcos Unified School District, GO, Series E, GO, 4.00%, 08/01/42

    5,000       5,013,570  

San Mateo County Community College District, GO, Series B, Election 2014, 5.00%, 09/01/45

    30,000       32,106,210  

San Mateo Foster City Public Financing Authority, RB, 4.00%, 05/01/45

    4,000       3,955,096  

Santa Clara County Financing Authority, RB

   

Series A, 4.00%, 04/01/35

    4,000       4,127,472  

Series A, 4.00%, 05/01/45

    2,230       2,148,699  

Santa Clara Unified School District, GO, Elsction 2014, 4.00%, 07/01/41

    5,000       5,017,125  

Santa Clarita Community College District, GO

   

Election 2016, 4.00%, 08/01/42

    1,400       1,407,869  

Election 2016, 5.25%, 08/01/48

    4,000       4,484,684  

Santa Cruz City Elementary School District, GO

   

Series C, 2.00%, 08/01/34

    1,770       1,476,861  

Series C, 2.00%, 08/01/36

    695       546,454  

Santa Cruz City High School District, GO

   

Series C, 2.00%, 08/01/35

    450       364,712  

Series C, 2.00%, 08/01/36

    1,755       1,379,000  

Series C, 2.00%, 08/01/37

    2,870       2,187,778  

Series C, 2.00%, 08/01/38

    2,955       2,195,364  

Series C, 2.13%, 08/01/39

    3,070       2,275,889  

Simi Valley Unified School District, GO, Series B, 4.00%, 08/01/48

    3,250       3,117,166  

South Orange County Public Financing Authority, RB 5.00%, 06/01/43

    1,790       1,961,559  
Security   Par
(000)
    Value  
County/City/Special District/School District (continued)        

South Orange County Public Financing Authority, RB (continued)

 

5.00%, 06/01/47

  $ 13,300     $ 14,510,952  

Southwestern Community College District, GO, Series A, AMT, 4.00%, 08/01/47

    7,940       7,986,568  

West Valley-Mission Community College District, GO, Series A, AMT, 4.00%, 08/01/44

    2,000       1,995,334  
   

 

 

 
    482,306,304  
Education — 7.6%        

California Educational Facilities Authority, RB, Series A, 3.56%, 04/01/31

    2,000       1,759,242  

California Infrastructure & Economic Development Bank, RB(d)

 

 

Series A, 4.13%, 01/01/35

    985       886,291  

Series A, 5.00%, 01/01/55

    2,205       1,875,412  

Series A-2, 5.00%, 01/01/24

    435       425,529  

California Infrastructure & Economic Development Bank, RB, CAB(c)

 

 

0.00%, 01/01/35

    2,620       1,200,602  

0.00%, 01/01/60

    37,500       2,052,825  

Class B, Class B, 0.00%, 01/01/61(d)

    17,885       1,039,959  

California Infrastructure & Economic Development Bank, Refunding RB, Series A, 1.84%, 10/01/31

    1,100       853,302  

California Municipal Finance Authority, RB 5.00%, 06/15/41(d)

    925       861,490  

6.00%, 07/01/44

    500       501,594  

5.00%, 06/15/51(d)

    1,385       1,230,282  

Series A, 5.50%, 08/01/34(d)

    265       265,312  

California Municipal Finance Authority, Refunding RB(d)

 

 

5.00%, 08/01/39

    1,785       1,678,657  

5.00%, 08/01/48

    2,140       1,896,081  

California Public Finance Authority, RB, Series B, 5.00%, 07/01/26(d)

    265       259,857  

California School Finance Authority, RB (d) 5.00%, 06/01/40

    1,420       1,406,830  

5.00%, 06/01/50

    2,240       2,115,749  

Series A, 5.00%, 06/01/33

    525       532,544  

Series A, 5.00%, 06/01/43

    525       519,475  

Series A, 5.00%, 06/01/49

    7,105       6,495,846  

Series A, 6.00%, 07/01/51

    1,500       1,516,398  

Series A, 5.00%, 06/01/55

    1,000       942,610  

Series A, 5.00%, 06/01/58

    3,355       2,988,976  

Series B, 6.00%, 06/01/31

    735       659,832  

Series A, AMT, 6.00%, 06/01/59

    8,925       8,495,154  

California State University RB, 5.00%, 11/01/43

    35,250       37,718,910  

California State University, Refunding RB

 

 

Series B, Class B, 1.85%, 11/01/31

    6,750       5,261,179  

Series B, Class B, 2.53%, 11/01/33

    2,580       2,055,873  

Series D, Class D, 1.69%, 11/01/29

    5,000       4,071,760  

California Statewide Communities Development Authority, Refunding RB(d)

 

 

Series A, Class A, 5.00%, 06/01/36

    2,900       2,819,455  

Series A, Class A, 5.00%, 06/01/46

    4,100       3,774,403  

East Bay Municipal Utility District Water System Revenue, Series A, RB, 5.00%, 06/01/42

    27,045       28,820,748  

Hastings Campus Housing Finance Authority, RB, Series A, Class A, 5.00%, 07/01/61(d)

    7,640       6,335,577  

Regents of the University of California Medical Center Pooled Revenue, RB, Series P, 5.00%, 05/15/47

    4,740       5,089,850  
 

 

 

S C H E D U L E   O F   I N V E S T M E N T S

  23


Schedule of Investments (unaudited) (continued)

November 30, 2022

  

BlackRock California Municipal Opportunities Fund

(Percentages shown are based on Net Assets)

 

Security   Par (000)
    Value  

Education (continued)

   

University of California, RB

   

Series AV, 5.25%, 05/15/42

  $ 12,305     $ 13,241,607  

Series M, RB, 5.00%, 05/15/42

    20,000       21,325,900  

University of California, RB, BAB, 6.30%, 05/15/50

    3,790       4,009,930  

University of California, Refunding RB

   

Series BE, 4.00%, 05/15/47

    4,500       4,507,330  

Series Q, 4.00%, 05/15/41

      10,300       10,429,873  
   

 

 

 
      191,922,244  
Health — 6.6%            

California Health Facilities Financing Authority, Refunding RB

   

4.00%, 05/15/46

    5,000       4,793,265  

Class A, 4.00%, 08/15/40

    7,500       7,461,112  

Class A, 5.00%, 08/15/51

    5,000       5,300,210  

Series A, 4.00%, 04/01/35

    4,350       4,249,737  

Series A, 4.00%, 11/15/40

    1,620       1,621,662  

Series A, 4.00%, 08/15/48

    25,000       24,026,650  

Series A, 4.00%, 08/15/50

    35,000       33,510,680  

Series A-2, 4.00%, 11/01/44

    26,655       26,227,454  

Sub-Series A-2, 4.00%, 11/01/38

    4,900       4,912,818  

California Municipal Finance Authority, Refunding RB(d)

   

Series A, 5.00%, 11/01/39

    980       976,421  

Series A, 5.00%, 11/01/49

    1,105       1,040,506  

California Public Finance Authority, RB

   

Series A, 4.00%, 07/15/38

    1,000       1,006,913  

Series A, 4.00%, 07/15/39

    1,500       1,504,029  

Series A, 4.00%, 07/15/40

    1,455       1,458,959  

Series A, 4.00%, 07/15/41

    3,715       3,707,005  

Series A, 5.00%, 07/15/46

    5,300       5,695,126  

Series A, 4.00%, 07/15/51

    4,800       4,620,874  

California Public Finance Authority, Refunding RB, Series A, 4.00%, 08/01/47

    5,250       4,908,834  

City of Corona, RB, 2.24%, 05/01/30

    10,000       8,203,110  

City of Huntington Beach California, Refunding RB, 2.32%, 06/15/30

    2,750       2,236,525  

Regents of the University of California Medical Center Pooled Revenue, RB, 5.00%, 05/15/41

    4,830       5,295,902  

Regents of the University of California Medical Center Pooled Revenue, Refunding RB

   

Series L, 5.00%, 05/15/41

    8,215       8,531,310  

Series L, 4.00%, 05/15/44

    6,050       5,825,134  
   

 

 

 
      167,114,236  
Housing — 3.9%            

California Community Housing Agency, RB, M/F Housing(d)

   

4.00%, 08/01/46

    3,200       2,473,334  

Series A, 5.00%, 04/01/49

    2,630       2,291,543  

Series A-1, 3.00%, 02/01/57

    5,000       3,180,880  

Series A-2, 4.00%, 02/01/50

    1,605       1,132,478  

Series A-2, 4.00%, 08/01/51

    12,920       9,185,887  

California Housing Finance Agency, RB, M/F Housing Class A, 3.25%, 08/20/36

    8,864       7,654,435  

Series 2021-2, Class A, (FHLMC),
3.75%, 03/25/35

    14,542       14,477,667  

City & County of San Francisco California, RB, M/F Housing, Series J, (FNMA), 2.55%, 07/01/39

    21,506       17,400,892  
Security   Par
(000)
    Value  
Housing (continued)            

CMFA Special Finance Agency VII, RB, Series A1, 3.00%, 08/01/56(d)

  $ 1,430     $ 930,738  

CMFA Special Finance Agency VIII, RB, M/F Housing, Series A-1, 3.00%, 08/01/56(d)

    4,840       3,031,912  

CMFA Special Finance Agency XII, RB, M/F Housing, 4.38%, 08/01/49(d)

    2,740       2,100,500  

CMFA Special Finance Agency, RB, M/F Housing(d)

   

Series A, 4.00%, 12/01/45

    3,965       2,977,422  

Series A-1, 3.00%, 12/01/56

    960       618,127  

Series A-2, 4.00%, 08/01/45

    1,205       942,373  

CSCDA Community Improvement Authority, RB, M/F Housing(d)

   

2.80%, 03/01/47

    3,430       2,472,934  

3.13%, 07/01/56

    5,620       3,729,050  

4.00%, 07/01/56

    2,275       1,727,988  

3.13%, 08/01/56

    1,460       972,284  

4.00%, 12/01/56

    445       310,645  

3.25%, 04/01/57

    5,075       3,511,590  

3.25%, 05/01/57

    4,730       3,294,771  

4.00%, 07/01/58

    2,150       1,498,131  

Series A, 5.00%, 07/01/51

    1,375       1,245,989  

Series A, 3.00%, 09/01/56

    2,045       1,321,412  

Series B, 4.00%, 07/01/58

    2,450       1,626,271  

Mezzanine Lien, 4.00%, 03/01/57

    500       342,299  

Mezzanine Lien, 4.00%, 06/01/57

    535       384,455  

Series B, Mezzanine Lien, 4.00%, 02/01/57

    1,450       1,027,770  

Series B, Mezzanine Lien, 4.00%, 12/01/59

    2,925       2,002,727  

Senior Lien, 3.25%, 05/01/57

    805       543,063  

Senior Lien, 3.13%, 06/01/57

    3,850       2,539,098  

Series B, Sub Lien, 4.00%, 12/01/59

    4,580       3,064,167  
   

 

 

 
          100,012,832  
State — 7.2%            

California State Public Works Board, RB 4.00%, 11/01/41

    6,825       6,815,288  

Series B, 4.00%, 05/01/41

    3,860       3,904,321  

Series B, 4.00%, 05/01/46

    21,640       20,908,590  

Series C, 5.00%, 11/01/38

    5,000       5,483,535  

Series C, 5.00%, 11/01/44

    24,985       26,907,671  

Series D, Class D, 4.00%, 05/01/42

    5,000       5,006,595  

Series D, Class D, 4.00%, 05/01/44

    2,280       2,246,516  

Series D, Class D, 4.00%, 05/01/45

    6,570       6,418,128  

California State University, Refunding RB, Series B, Class B, 1.67%, 11/01/29

    9,000       7,318,881  

California Statewide Communities Development Authority, SAB

   

Series A, Class A, 5.00%, 09/02/39

    1,375       1,427,045  

Series A, Class A, 5.00%, 09/02/44

    675       692,352  

Series A, Class A, 5.00%, 09/02/48

    675       690,205  

El Dorado Irrigation District, Refunding RB, Series C, Class C, 2.06%, 03/01/29

    3,500       2,964,469  

Sacramento Area Flood Control Agency, SAB, 4.00%, 10/01/43

    8,245       8,120,937  

San Francisco City & County Redevelopment Agency Successor Agency, TA, CAB(c)(d)

   

Series D, 0.00%, 08/01/23

    465       453,193  

Series D, 0.00%, 08/01/31

    3,000       1,983,684  

State of California, Refunding GO 4.00%, 03/01/36

    3,190       3,294,469  

4.00%, 10/01/37

    2,680       2,761,124  
 

 

 

24  

2 0 2 2   B L A C K R O C K   S E M I - A N N U A L   R E P O R T   T O   S H A R E H O L D E R S


Schedule of Investments (unaudited) (continued)

November 30, 2022

  

BlackRock California Municipal Opportunities Fund

(Percentages shown are based on Net Assets)

 

Security   Par (000)
    Value  

State (continued)

   

State of California, Refunding GO (continued) 5.25%, 10/01/39

  $ 18,150     $ 19,471,973  

5.00%, 09/01/42

    14,185       15,985,899  

5.25%, 09/01/47

    10,000       11,279,830  

4.00%, 04/01/49

    11,500       11,502,357  

Various Purposes, 5.00%, 10/01/39

    5,000       5,287,685  

Various Purposes, 4.00%, 03/01/40

      13,000       13,155,870  
   

 

 

 
      184,080,617  
Tobacco — 1.6%            

California County Tobacco Securitization Agency, Refunding RB

   

5.00%, 06/01/50

    1,070       1,042,468  

Series A, 5.00%, 06/01/47

    2,595       2,405,604  

Series A, 4.00%, 06/01/49

    1,540       1,338,446  

California County Tobacco Securitization Agency, Refunding RB, CAB, Series B-2, Subordinate, 0.00%, 11/01/43(c)

    7,620       1,361,664  

California Statewide Financing Authority, RB, 0.00%, 06/01/55(c)(d)

    12,700       694,766  

California Statewide Financing Authority, RB, CAB, Series D, 0.00%, 06/01/55(c)(d)

    20,750       1,280,897  

Golden State Tobacco Securitization Corp., Refunding RB

   

Class B, (SAP), 2.75%, 06/01/34

    5,175       4,097,793  

Subordinate, 3.85%, 06/01/50

    6,020       5,528,642  

Golden State Tobacco Securitization Corp., Refunding RB, CAB, Series B-2, Class B-2, Subordinate, 0.00%, 06/01/66(c)

    21,820       2,333,082  

Inland Empire Tobacco Securitization Corp., RB, 0.00%, 06/01/57(c)

    34,680       2,181,892  

Inland Empire Tobacco Securitization Corp., Refunding RB, 3.68%, 06/01/38

    4,205       3,715,513  

Tobacco Securitization Authority of Southern California, Refunding RB, 5.00%, 06/01/48

    14,240       14,546,772  
   

 

 

 
      40,527,539  
Transportation — 14.1%            

Burbank-Glendale-Pasadena Airport Authority Brick Campaign, ARB, Series B, 5.56%, 07/01/32

    1,000       1,008,911  

City of Long Beach California Harbor Revenue, ARB, Series A, AMT, 5.00%, 05/15/44

    7,525       8,095,320  

City of Long Beach California Harbor Revenue, RB, Series A, AMT, 5.00%, 05/15/49

    2,690       2,893,022  

City of Long Beach California Harbor Revenue, Refunding ARB, Series C, 5.00%, 05/15/47

    6,400       6,716,749  

City of Los Angeles Department of Airports, ARB

   

AMT, 5.25%, 05/15/47

    7,000       7,418,166  

Series A, AMT, 4.00%, 05/15/40

    15,545       15,183,408  

Series A, AMT, 5.00%, 05/15/40

    6,615       6,747,836  

Series A, AMT, 4.00%, 05/15/42

    5,425       5,117,430  

Series A, AMT, 5.00%, 05/15/42

    23,725       24,594,189  

Series A, AMT, 5.00%, 05/15/44

    3,395       3,526,695  

Series B, AMT, 5.00%, 05/15/41

    18,710       19,278,634  

Series C, AMT, 5.00%, 05/15/45

    20,000       20,624,720  

Series D, AMT, 5.00%, 05/15/41

    8,520       8,683,107  

City of Los Angeles Department of Airports, Refunding ARB

   

AMT, Subordinate, 5.00%, 05/15/35

    5,425       5,746,404  
Security   Par
(000)
    Value  

Transportation (continued)

   

City of Los Angeles Department of Airports, Refunding ARB (continued)

 

 

Series D, AMT, Subordinate, 5.00%, 05/15/46

  $ 5,000     $ 5,254,360  

Los Angeles County Metropolitan Transportation Authority Sales Tax Revenue, Refunding RB, Series A, 5.00%, 07/01/41

    1,100       1,172,599  

Norman Y Mineta San Jose International Airport SJC, Refunding RB, Series A, AMT, 5.00%, 03/01/47

    8,475       8,528,681  

Port of Los Angeles, Refunding ARB, Series A, AMT, 5.00%, 08/01/44

    2,000       2,014,142  

Port of Los Angeles, Refunding RB, Series C, 4.00%, 08/01/39

    3,570       3,586,479  

San Diego County Regional Airport Authority, ARB

   

Series B, AMT, Subordinate, 5.00%, 07/01/46

    25,710       26,525,650  

Series A, Subordinate, 5.00%, 07/01/46

    19,560       20,606,695  

San Francisco City & County Airport Comm-San Francisco International Airport, Refunding ARB 2nd Series, AMT, 5.00%, 05/01/48

    10,145       10,301,415  

Series A, AMT, 5.25%, 05/01/42

    40,370       41,865,587  

Series A, AMT, 5.00%, 05/01/44

    10,125       10,124,676  

Series A, AMT, 5.00%, 05/01/47

    31,420       31,869,055  

Series B, Class B-AMT, AMT, 5.00%, 05/01/46

    29,915       30,283,523  

Series D, AMT, 5.00%, 05/01/43

    6,440       6,612,205  

Series D, AMT, 5.25%, 05/01/48

    3,500       3,601,136  

Series E, AMT, 5.00%, 05/01/38

    9,055       9,405,628  

San Francisco City & County Airport Comm-San Francisco International Airport, Refunding RB, Series A, 5.00%, 10/01/46

    4,000       4,372,556  

San Francisco Municipal Transportation Agency, RB, Series C, 4.00%, 03/01/46

    7,000       6,745,396  
   

 

 

 
      358,504,374  
Utilities — 19.1%            

California Statewide Communities Development Authority, Refunding RB, 1.68%, 02/01/29

    1,000       803,196  

City of Los Angeles California Wastewater System Revenue, Refunding RB

   

Series A, 5.00%, 06/01/43

    10,000       10,672,640  

Series A, Subordinate, 5.00%, 06/01/47

    12,655       13,864,489  

Series A, Subordinate, 4.00%, 06/01/52

    10,000       9,463,280  

City of Sacramento California Water Revenue, RB, 5.00%, 09/01/42

    6,465       6,867,278  

Contra Costa Water District, Refunding RB, Series W, Class D, 4.00%, 10/01/46

    10,000       9,867,210  

East Bay Municipal Utility District Water System Revenue, RB

   

Series A, 5.00%, 06/01/49

    2,500       2,686,005  

Series A, Class A, 4.00%, 06/01/45

    4,885       4,887,369  

Eastern Municipal Water District Financing Authority, RB, Series D, Class D, 5.25%, 07/01/42

    18,500       19,918,969  

Irvine Ranch Water District, COP, 5.00%, 03/01/46

    19,330       20,222,911  

Los Angeles Department of Water & Power Water System Revenue, Refunding RB

   

Series A, 5.00%, 07/01/41

    12,520       13,262,774  

Series A, 5.25%, 07/01/44

    10,650       11,339,918  

Series A, Class A, 5.00%, 07/01/46

    29,820       30,995,892  

Series B, 4.00%, 07/01/49

    15,000       14,738,820  

Series C, 5.00%, 07/01/43

    7,480       8,385,304  

Series C, 5.00%, 07/01/47

    5,000       5,531,235  
 

 

 

S C H E D U L E   O F   I N V E S T M E N T S

  25


Schedule of Investments (unaudited) (continued)

November 30, 2022

  

BlackRock California Municipal Opportunities Fund

(Percentages shown are based on Net Assets)

 

Security  

Par

(000)

    Value  

Utilities (continued)

   

Los Angeles Department of Water & Power, Refunding RB

   

Series B, 5.00%, 07/01/51

  $ 29,545     $ 31,935,456  

Series D, 5.00%, 07/01/49

    5,780       6,170,208  

Metropolitan Water District of Southern California, RB, Series A, AMT, 5.00%, 10/01/51

    3,000       3,302,691  

Metropolitan Water District of Southern California, Refunding RB

   

5.00%, 01/01/38

    7,000       7,710,990  

Series C, 5.00%, 07/01/39

    21,705       24,370,417  

Northern California Power Agency, RB, BAB, Series A, 7.31%, 06/01/40

    2,150       2,540,545  

Rancho Water District Financing Authority, Refunding RB

   

Series A, 4.00%, 08/01/38

    4,500       4,641,390  

Series A, 4.00%, 08/01/39

    4,475       4,598,720  

Sacramento County Sanitation Districts Financing Authority, Refunding RB, Series A, 5.00%, 12/01/45

    10,015       10,882,309  

Sacramento Municipal Utility District, RB

   

Series G, 5.00%, 08/15/38

    22,390       24,656,450  

Series G, 5.00%, 08/15/41

    20,020       21,869,808  

Sacramento Municipal Utility District, Refunding RB

   

Series H, 4.00%, 08/15/40

    7,700       7,875,722  

Series H, 4.00%, 08/15/45

    1,000       988,230  

San Diego Public Facilities Financing Authority, Refunding RB

   

Series A, 5.00%, 05/15/36

    5,000       5,391,390  

Series A, 5.00%, 05/15/38

        13,595           14,554,644  

Series B, 5.00%, 08/01/38

    7,725       8,208,631  

Series B, 5.00%, 08/01/39

    8,735       9,256,881  

Series A, AMT, 4.00%, 08/01/36

    500       513,740  

Series A, AMT, 4.00%, 08/01/37

    1,000       1,020,433  

Series A, AMT, 4.00%, 08/01/38

    1,000       1,016,212  

Series A, AMT, 4.00%, 08/01/39

    1,250       1,262,500  

Series A, AMT, 4.00%, 08/01/40

    1,925       1,944,377  

Series A, AMT, 4.00%, 08/01/45

    14,745       14,435,532  

San Francisco City & County Public Utilities Commission Power Revenue, Refunding RB

   

Series A, 4.00%, 11/01/41

    2,515       2,523,134  

Series A, 4.00%, 11/01/43

    2,390       2,372,450  

San Francisco City & County Public Utilities Commission Wastewater Revenue, RB, Series B, 1.00%, 10/01/26

    27,880       26,330,541  

San Francisco City & County Public Utilities Commission Wastewater Revenue, Refunding RB

   

Series B, 4.00%, 10/01/42

    17,010       17,013,793  

Series B, 5.00%, 10/01/43

    2,965       3,277,206  

Series B, 5.00%, 10/01/44

    2,515       2,768,145  

Series B, 5.00%, 10/01/48

    4,290       4,670,214  

San Mateo Foster City Public Financing Authority, RB, 4.00%, 08/01/44

    5,205       5,205,812  
Security   Par
(000)
    Value  

Utilities (continued)

   

South Coast Water District Financing Authority, Refunding RB, Series A, 5.00%, 02/01/44

  $ 2,480     $ 2,672,247  

State of California Department of Water Resources, Refunding RB, Series AW, 4.00%, 12/01/34

    24,015       24,866,716  
   

 

 

 
      484,354,824  
   

 

 

 

Total Municipal Bonds in California

 

    2,046,067,644  

Illinois — 0.1%

   

County/City/Special District/School District — 0.1%

 

 

Chicago Board of Education, GO, BAB, 6.14%, 12/01/39

    2,060       1,776,647  
   

 

 

 

Puerto Rico — 7.7%

   

State — 4.3%

   

Commonwealth of Puerto Rico, GO 0.00%, 11/01/43(c)

    18,362       8,384,773  

0.00%, 11/01/51(c)

    24,815       8,781,129  

Series A1, Restructured, 5.63%, 07/01/29

    5,196       5,315,414  

Series A1, Restructured, 5.75%, 07/01/31

    2,021       2,070,329  

Series A1, Restructured, 4.00%, 07/01/33

    1,917       1,671,521  

Series A1, Restructured, 4.00%, 07/01/35

    1,723       1,471,381  

Series A1, Restructured, 4.00%, 07/01/37

    1,479       1,232,378  

Series A1, Restructured, 4.00%, 07/01/41

    2,010       1,611,424  

Series A1, Restructured, 4.00%, 07/01/46

    2,091       1,606,053  

Commonwealth of Puerto Rico, GO, CAB, Series A, Restructured, 0.00%, 07/01/33(c)

    2,467       1,347,450  

Commonwealth of Puerto Rico, RB, 0.00%, 11/01/51(c)

    1,124       367,540  

Puerto Rico Sales Tax Financing Corp. Sales Tax Revenue, RB

   

Series A-2, Convertiable, Restructured, 4.33%, 07/01/40

    380       343,016  

Series A-1, Restructured, 4.75%, 07/01/53

    38,748       34,941,319  

Series A-1, Restructured, 5.00%, 07/01/58

    9,537       8,977,588  

Series A-2, Restructured, 4.54%, 07/01/53

    114       99,178  

Series A-2, Restructured, 4.78%, 07/01/58

    15,623       14,113,615  

Series A-2, Restructured, 4.33%, 07/01/40

    10,624       9,586,768  

Puerto Rico Sales Tax Financing Corp. Sales Tax Revenue, RB, CAB(c)

   

Series A-1, Restructured, 0.00%, 07/01/29

    1,117       811,629  

Series A-1, Restructured, 0.00%, 07/01/33

    3,239       1,894,420  

Series A-1, Restructured, 0.00%, 07/01/46

    17,313       4,360,954  

Series B-1, Restructured, 0.00%, 07/01/46

    5,761       1,470,639  
   

 

 

 
      110,458,518  
Tobacco — 0.4%            

Children’s Trust Fund, RB, Series A, Class A, 0.00%, 05/15/57(c)

    150,000       9,916,950  
   

 

 

 
Utilities — 3.0%            

Puerto Rico Electric Power Authority, RB 3rd Series, 0.00%, 01/01/20(a)(e)

    593       449,564  

Series A-3, 10.00%, 07/01/19(a)(e)

    2,137       1,666,479  

Series B-3, 10.00%, 07/01/19(a)(e)

    2,137       1,666,479  

Series C-1, 5.40%, 01/01/18(a)(e)

    5,870       4,446,726  

Series C-2, 5.40%, 07/01/18(a)(e)

    5,871       4,447,446  

Series C-4, 5.40%, 07/01/20(a)(e)

    593       449,564  

Series CCC, 5.25%, 07/01/26(a)(e)

    1,680       1,240,596  

Series CCC, 5.25%, 07/01/28(a)(e)

    955       705,220  
 

 

 

26  

2 0 2 2   B L A C K R O C K   S E M I - A N N U A L   R E P O R T   T O   S H A R E H O L D E R S


Schedule of Investments (unaudited) (continued)

November 30, 2022

  

BlackRock California Municipal Opportunities Fund

(Percentages shown are based on Net Assets)

 

Security   Par
(000)
    Value  

 

 

Utilities (continued)

   

Puerto Rico Electric Power Authority, RB (continued)

 

 

Series D-4, 7.50%, 07/01/20

  $ 1,638     $ 1,240,852  

Series WW, 5.50%, 07/01/17(a)(e)

    1,315       971,062  

Series WW, 5.50%, 07/01/18(a)(e)

    1,155       852,910  

Series WW, 5.50%, 07/01/19(a)(e)

    935       690,451  

Series WW, 5.38%, 07/01/24(a)(e)

    875       646,144  

Series WW, 5.25%, 07/01/33(a)(e)

    885       653,528  

Series XX, 5.25%, 07/01/35(a)(e)

    400       295,380  

Series XX, 5.75%, 07/01/36(a)(e)

    555       409,840  

Series A, AMT, 6.75%, 07/01/36(a)(e)

    7,630       5,780,038  

Series A, RB, 5.00%, 07/01/29(a)(e)

    4,130       3,049,799  

Series A, RB, 7.00%, 07/01/33(a)(e)

    2,230       1,689,316  

Series A, RB, 5.00%, 07/01/42(a)(e)

    8,830       6,520,513  

Series A, RB, 7.00%, 07/01/43(a)(e)

    955       723,452  

Series TT, RB, 5.00%, 07/01/25(a)(e)

    480       354,456  

Series TT, RB, 5.00%, 07/01/26(a)(e)

    1,285       948,908  

Series WW, RB, 5.50%, 07/01/38(a)(e)

    1,170       863,987  

Series XX, RB, 5.25%, 07/01/27(a)(e)

    645       476,300  

Series XX, RB, 5.25%, 07/01/40(a)(e)

    11,490       8,484,790  

Puerto Rico Electric Power Authority, Refunding RB

   

Series AAA, 5.25%, 07/01/22(a)(e)

    2,150       1,587,668  

Series AAA, 5.25%, 07/01/27

    6,540       4,829,463  

Series AAA, 5.25%, 07/01/28(a)(e)

    4,690       3,463,330  

Series BBB, 5.40%, 07/01/28

    2,805       2,071,352  

Series UU, 3.47%, 07/01/17(a)(b)(e)

    395       296,250  

Series UU, 0.00%, 07/01/18(a)(b)(e)

    355       266,250  

Series UU, 1.32%, 07/01/20(a)(b)(e)

    3,175       2,381,250  

Series UU, 3.21%, 07/01/31(b)(e)

    3,765       2,823,750  

Series ZZ, 5.00%, 07/01/17(a)(e)

    925       683,066  

Series ZZ, 5.25%, 07/01/19

    2,945       2,174,735  

Series ZZ, 5.25%, 07/01/24(a)(e)

    1,990       1,469,516  

Series ZZ, 5.00%, 07/01/28(a)(e)

    990       731,066  

Series AAA, Refunding RB, 5.25%, 07/01/29(a)(e)

    530       391,379  

Puerto Rico Electric Power Authority, Refunding RB, BAB, 6.13%, 07/01/40

    4,060       2,998,107  
   

 

 

 
      75,890,982  
   

 

 

 

Total Municipal Bonds in Puerto Rico

      196,266,450  
   

 

 

 

Total Municipal Bonds — 88.4%
(Cost: $2,364,778,168)

      2,244,110,741  
   

 

 

 

Municipal Bonds Transferred to Tender Option Bond Trusts(f)

 

California — 14.5%

 

 
County/City/Special District/School District — 2.4%        

Grossmont-Cuyamaca Community College District, GO, Election 2012, Series B, 5.00%, 08/01/44

    29,715       31,616,402  

Los Angeles County Metropolitan Transportation Authority, Sales Tax Revenue, Refunding RB, Series A, 5.00%, 07/01/44

    25,935       27,829,748  
   

 

 

 
      59,446,150  
Education — 2.4%            

Regents of the University of California Medical Center Pooled Revenue, RB, Series P, 5.00%, 05/15/47

    15,370       16,504,437  

University of California, Refunding RB, Series AZ, 5.00%, 05/15/43

    41,740       44,853,261  
   

 

 

 
      61,357,698  
Security  

Par

(000)

    Value  

 

 

Utilities — 9.7%

   

City of Los Angeles California Wastewater System Revenue, RB, Series A, 5.25%, 06/01/47

  $ 20,000     $ 21,227,740  

City of Los Angeles Department of Airports, ARB, AMT, Series A, 5.00%, 05/15/34

    11,635       12,638,658  

Eastern Municipal Water District Financing Authority, RB, Series D, Class D, 5.00%, 07/01/47

    36,105       37,997,651  

Los Angeles Department of Water & Power, RB, 5.00%, 07/01/46

    35,325       38,588,168  

Metropolitan Water District of Southern California, RB, AMT, Series A, 5.00%, 10/01/51

    26,620       29,305,878  

Sacramento County Sanitation Districts Financing Authority, Refunding RB, Series A, 5.00%, 12/01/50

    23,620       25,406,570  

San Diego Public Facilities Financing Authority, Refunding RB, Subordinate, Series A, 5.00%, 08/01/43

    33,820       36,336,225  

San Francisco City & County Public Utilities Commission Wastewater Revenue, RB, Series B, 5.00%, 10/01/43

    41,405       44,198,702  
   

 

 

 
      245,699,592  
   

 

 

 

Total Municipal Bonds in California

      366,503,440  
   

 

 

 

Total Municipal Bonds Transferred to Tender Option Bond Trusts — 14.5%
(Cost: $382,356,373)

 

    366,503,440  
   

 

 

 

Total Long-Term Investments — 103.0%
(Cost: $2,751,026,835)

      2,613,342,649  
   

 

 

 
    Shares        

 

 

Short-Term Securities

   

Money Market Funds — 3.1%

   

BlackRock Liquidity Funds California Money Fund, Institutional Class,
1.33%(g)(h)

    79,171,327       79,131,741  
   

 

 

 

Total Short-Term Securities — 3.1%
(Cost: $79,118,235)

      79,131,741  
   

 

 

 

Total Investments — 106.1%
(Cost: $2,830,145,070)

      2,692,474,390  

Other Assets Less Liabilities — 0.7%

      16,500,274  

Liability for TOB Trust Certificates, Including Interest Expense and Fees Payable — (6.8)%

 

    (171,498,230
   

 

 

 

Net Assets — 100.0%

    $   2,537,476,434  
   

 

 

 

 

(a)

Non-income producing security.

(b) 

Variable rate security. Interest rate resets periodically. The rate shown is the effective interest rate as of period end. Security description also includes the reference rate and spread if published and available.

(c) 

Zero-coupon bond.

(d) 

Security exempt from registration pursuant to Rule 144A under the Securities Act of 1933, as amended. These securities may be resold in transactions exempt from registration to qualified institutional investors.

(e) 

Issuer filed for bankruptcy and/or is in default.

(f) 

Represent bonds transferred to a TOB Trust in exchange of cash and residual certificates received by the Fund. These bonds serve as collateral in a secured borrowing. See Note 4 of the Notes to Financial Statements for details.

(g) 

Affiliate of the Fund.

(h) 

Annualized 7-day yield as of period end.

 

 

For Fund compliance purposes, the Fund’s sector classifications refer to one or more of the sector sub-classifications used by one or more widely recognized market indexes or rating group indexes, and/or as defined by the investment adviser. These definitions may not apply for purposes of this report, which may combine such sector sub-classifications for reporting ease.

 

 

S C H E D U L E   O F   I N V E S T M E N T S

  27


Schedule of Investments (unaudited) (continued)

November 30, 2022

  

BlackRock California Municipal Opportunities Fund

 

Affiliates

Investments in issuers considered to be affiliate(s) of the Fund during the six months ended November 30, 2022 for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:

 

                   
       Affiliated Issuer    Value at
05/31/22
       Purchases
at Cost
      

Proceeds

from Sales

       Net
Realized
Gain (Loss)
       Change in
Unrealized
Appreciation
(Depreciation)
       Value at
11/30/22
       Shares
Held at
11/30/22
       Income        Capital Gain
Distributions
from
Underlying
Funds
          
 

BlackRock Liquidity Funds California Money Fund, Institutional Class

   $  124,791,461        $              —        $  (45,651,950)(a)        $  (16,177)        $  8,407        $  79,131,741          79,171,327        $  529,552        $              —    
              

 

 

      

 

 

      

 

 

      

 

 

           

 

 

      

 

 

   

 

  (a)

Represents net amount purchased (sold).    

 

Derivative Financial Instruments Outstanding as of Period End    

Futures Contracts    

 

         
Description    Number of
Contracts
       Expiration
Date
       Notional
Amount (000)
       Value/
Unrealized
Appreciation
(Depreciation)
 

Short Contracts

                 

10-Year U.S. Treasury Note

     3,046          03/22/23        $  346,578        $ (2,470,744

U.S. Long Bond

     3,361          03/22/23          428,948          (2,990,327

5-Year U.S. Treasury Note

     1,828          03/31/23          198,852          (1,438,321
                 

 

 

 
                  $ (6,899,392)  
                 

 

 

 

Derivative Financial Instruments Categorized by Risk Exposure

As of period end, the fair values of derivative financial instruments located in the Statements of Assets and Liabilities were as follows:

 

               
      Commodity
Contracts
       Credit
Contracts
       Equity
Contracts
       Foreign
Currency
Exchange
Contracts
       Interest
Rate
Contracts
       Other
Contracts
       Total  

Liabilities — Derivative Financial Instruments

                                

Futures contracts

                                

Unrealized depreciation on futures contracts(a)

   $              —        $              —        $             —        $             —        $  6,899,392        $             —        $  6,899,392  
  

 

 

      

 

 

      

 

 

      

 

 

      

 

 

      

 

 

      

 

 

 

 

  (a) 

Net cumulative unrealized appreciation (depreciation) on futures contracts and centrally cleared swaps, if any, are reported in the Schedule of Investments. In the Statements of Assets and Liabilities, only current day’s variation margin is reported in receivables or payables and the net cumulative unrealized appreciation (depreciation) is included in accumulated earnings (loss).

 

For the period ended November 30, 2022, the effect of derivative financial instruments in the Statements of Operations was as follows:

 

               
      Commodity
Contracts
       Credit
Contracts
       Equity
Contracts
       Foreign
Currency
Exchange
Contracts
      

Interest

Rate
Contracts

       Other
Contracts
       Total  

Net Realized Gain (Loss) from:

                                

Futures contracts

   $              —        $             —        $              —        $             —        $  68,949,577        $             —        $ 68,949,577  
  

 

 

      

 

 

      

 

 

      

 

 

      

 

 

      

 

 

      

 

 

 

Net Change in Unrealized Appreciation (Depreciation) on:

                                

Futures contracts

   $             —        $             —        $              —        $             —        $  (14,228,410)        $             —        $ (14,228,410
  

 

 

      

 

 

      

 

 

      

 

 

      

 

 

      

 

 

      

 

 

 

Average Quarterly Balances of Outstanding Derivative Financial Instruments    

 

   

Futures contracts:

  

Average notional value of contracts — short

   $ 793,616,813  

For more information about the Fund’s investment risks regarding derivative financial instruments, refer to the Notes to Financial Statements.

 

 

28  

2 0 2 2   B L A C K R O C K   S E M I - A N N U A L   R E P O R T   T O   S H A R E H O L D E R S


Schedule of Investments (unaudited) (continued)

November 30, 2022

  

BlackRock California Municipal Opportunities Fund

 

Fair Value Hierarchy as of Period End

Various inputs are used in determining the fair value of financial instruments. For a description of the input levels and information about the Fund’s policy regarding valuation of financial instruments, refer to the Notes to Financial Statements.

The following table summarizes the Fund’s financial instruments categorized in the fair value hierarchy. The breakdown of the Fund’s financial instruments into major categories is disclosed in the Schedule of Investments above.

 

 

 
     Level 1        Level 2        Level 3        Total   

 

 

Assets

                 

Investments

                 

Long-Term Investments

                 

Corporate Bonds

   $        $ 2,728,468        $        $ 2,728,468  

Municipal Bonds

              2,244,110,741                   2,244,110,741  

Municipal Bonds Transferred to Tender Option Bond Trusts

              366,503,440                   366,503,440  

Short-Term Securities

                 

Money Market Funds

     79,131,741                            79,131,741  
  

 

 

      

 

 

      

 

 

      

 

 

 
   $ 79,131,741        $  2,613,342,649        $  —        $  2,692,474,390  
  

 

 

      

 

 

      

 

 

      

 

 

 

Derivative Financial Instruments(a)

                 

Liabilities

                 

Interest Rate Contracts

   $ (6,899,392      $        $             —        $ (6,899,392)  
  

 

 

      

 

 

      

 

 

      

 

 

 

 

  (a) 

Derivative financial instruments are futures contracts. Futures contracts are valued at the unrealized appreciation (depreciation) on the instrument.    

 

The Fund may hold assets and/or liabilities in which the fair value approximates the carrying amount for financial statement purposes. As of period end, TOB Trust Certificates of $170,654,950 are categorized as Level 2 within the fair value hierarchy.

See notes to financial statements.

 

 

S C H E D U L E   O F   I N V E S T M E N T S

  29


Schedule of Investments (unaudited)

November 30, 2022

  

BlackRock New Jersey Municipal Bond Fund

(Percentages shown are based on Net Assets)

 

Security   Par
(000)
    Value  

Municipal Bonds

 

Guam — 0.2%  
Utilities — 0.2%  

Guam Government Waterworks Authority, RB, Series A, AMT, 5.00%, 01/01/50

  $ 500     $ 500,368  
   

 

 

 
New Jersey — 87.0%            
Corporate — 2.8%            

New Jersey Economic Development Authority, RB, AMT, 4.00%, 08/01/59

    4,200       3,271,469  

New Jersey Economic Development Authority, Refunding RB

   

3.38%, 04/01/38

    1,360       1,256,761  

3.50%, 04/01/42

    720       630,887  

Series A, AMT, 2.20%, 10/01/39(a)

    3,880       3,414,039  
   

 

 

 
      8,573,156  
County/City/Special District/School District — 14.1%  

Carlstadt School District, Refunding GO, (SCH BD RES FD), 4.00%, 05/01/30

    1,415       1,438,125  

City of East Orange New Jesery, Refunding GO, (AGM), 3.00%, 09/15/31

    2,200       2,153,547  

Clifton Board of Education, GO

   

(AGM SCH BD RES FD), 2.25%, 08/15/45

    1,790       1,200,861  

(AGM SCH BD RES FD), 2.25%, 08/15/46

    1,850       1,214,569  

Essex County Improvement Authority, RB, (GTD), 4.00%, 11/01/44

    7,695       7,644,336  

Essex County Improvement Authority, Refunding RB, (NPFGC GTD), 5.50%, 10/01/29

    1,500       1,764,032  

Ewing Township Board of Education, GO

   

(SCH BD RES FD), 4.00%, 07/15/38

    920       920,477  

(SCH BD RES FD), 4.00%, 07/15/39

    740       736,654  

Hudson County Improvement Authority, RB, 5.00%, 05/01/46

    1,440       1,487,367  

Monmouth Regional High School District, GO, (SCH BD RES FD), 3.00%, 02/01/34

    1,260       1,191,018  

New Jersey Economic Development Authority, RB 5.00%, 06/15/23(b)

    2,000       2,026,402  

Series AAA, 5.00%, 06/15/41

    1,990       2,027,906  

Series B, AMT, 6.50%, 04/01/31

    1,605       1,632,068  

Newark Board of Education, Refunding GO, (BAM SCH BD RES FD), 3.00%, 07/15/39

    630       531,215  

Sparta Township Board of Education, Refunding GO, (SCH BD RES FD), 5.00%, 02/15/25(b)

    1,350       1,419,773  

Toms River Board of Education, GO, (SCH BD RES FD), 3.00%, 07/15/37

    4,605       4,127,683  

Township of Bloomfield New Jersey, Refunding GO, 3.00%, 02/01/33

    1,040       1,022,355  

Township of Irvington New Jersey, Refunding GO, Series A, (AGM), 5.00%, 07/15/24(b)

    2,445       2,539,230  

Township of Monroe New Jersey/Gloucester County, Refunding GO

   

3.00%, 06/01/37

    385       359,225  

3.00%, 06/01/38

    410       377,424  

Union County Utilities Authority, Refunding RB

   

Series A, AMT, (GTD), 4.75%, 12/01/31

    1,225       1,226,844  

Series A, AMT, (GTD), 5.25%, 12/01/31

    6,120       6,131,806  
   

 

 

 
      43,172,917  
Security   Par
(000)
    Value  
Education — 15.4%  

Atlantic County Improvement Authority, RB, Series A, (AGM), 4.00%, 07/01/46

  $   1,250     $ 1,156,195  

Camden County Improvement Authority, RB, 6.00%, 06/15/52

    220       227,598  

Gloucester County Improvement Authority, RB

   

5.00%, 07/01/44

    530       539,277  

Series A, Class A, 5.00%, 07/01/34

    1,855       1,931,684  

New Jersey Economic Development Authority, RB 6.00%, 10/01/43

    1,000       1,013,402  

Series A, 5.00%, 07/01/27(c)

    170       169,193  

Series A, 5.13%, 11/01/29(c)

    100       99,468  

Series A, 5.25%, 07/01/37(c)

    470       451,449  

Series A, 6.25%, 11/01/38(c)

    210       215,773  

Series A, 5.00%, 06/15/39(c)

    825       784,178  

Series A, 5.38%, 07/01/47(c)

    815       749,300  

Series A, 5.00%, 12/01/48

    2,190       2,087,015  

Series A, 5.00%, 06/15/49(c)

    135       122,514  

Series A, 5.00%, 07/01/50

    200       186,573  

Series A, 6.50%, 11/01/52(c)

    1,210       1,230,737  

Series A, 5.25%, 11/01/54(c)

    1,100       945,785  

Series A, Class A, 5.00%, 07/01/47

    265       243,382  

New Jersey Economic Development Authority, Refunding RB

   

(AGM), 5.00%, 06/01/37

    2,760       2,826,947  

(AGM), 5.00%, 06/01/42

    690       703,370  

Class I, (SAP), 3.50%, 03/01/28(a)

    2,590       2,602,624  

Series A, 4.75%, 08/01/24(c)

    100       99,524  

Series A, 5.63%, 08/01/34(c)

    250       250,785  

Series A, 5.00%, 09/01/37(c)

    315       300,292  

Series A, 5.88%, 08/01/44(c)

    430       430,679  

Series A, 5.13%, 09/01/52(c)

    1,000       890,043  

AMT, 3.00%, 08/01/41

    4,620       3,302,644  

AMT, 3.00%, 08/01/43

    6,650       4,812,284  

New Jersey Educational Facilities Authority, RB

   

Series C, (AGM), 3.25%, 07/01/49

    290       225,276  

Series C, (AGM), 4.00%, 07/01/50

    245       224,677  

New Jersey Educational Facilities Authority, Refunding RB

   

Series A, 5.00%, 07/01/33

    2,005       2,055,741  

Series B, 5.00%, 07/01/32

    2,465       2,586,386  

Series H, (AGM), 4.00%, 07/01/39

    715       690,288  

New Jersey Higher Education Student Assistance Authority, RB, Sub-Series C, AMT, 4.00%, 12/01/48

    700       619,606  

New Jersey Higher Education Student Assistance Authority, Refunding RB

   

Series B, Class B-AMT, AMT, 3.00%, 12/01/32

    1,635       1,525,921  

Series B, Class B-AMT, AMT, 4.00%, 12/01/41

    950       974,860  

Sub-Series C, Class C-AMT, AMT, 3.63%, 12/01/49

    1,065       877,443  

Series C, Class C-AMT, AMT, Subordinate, 5.00%, 12/01/52

    1,075       1,077,244  

New Jersey Institute of Technology, RB, Series A, AMT, 5.00%, 07/01/40

    5,000       5,130,565  

Rutgers The State University of New Jersey, Refunding RB, Series L, 5.00%, 05/01/23(b)

    2,500       2,526,180  
   

 

 

 
      46,886,902  
 

 

 

30  

2 0 2 2   B L A C K R O C K   S E M I - A N N U A L   R E P O R T   T O   S H A R E H O L D E R S


Schedule of Investments (unaudited) (continued)

November 30, 2022

  

BlackRock New Jersey Municipal Bond Fund

(Percentages shown are based on Net Assets)

 

Security   Par
(000)
    Value  
Health — 16.6%  

New Jersey Economic Development Authority, Refunding RB

   

5.00%, 01/01/34

  $ 270     $ 258,546  

5.00%, 01/01/39

    270       247,413  

New Jersey Health Care Facilities Financing Authority, RB

   

5.00%, 07/01/42

    4,660       4,791,859  

2.38%, 07/01/46

    3,740       2,407,101  

3.00%, 07/01/51

    7,905       5,799,069  

Series A, 5.25%, 07/01/35

    1,460       1,478,687  

Series A, 5.00%, 07/01/39

    1,150       1,169,628  

Series A, 5.00%, 07/01/43

    1,535       1,553,415  

VRDN, 1.55%, 12/07/22(a)(d)

    14,000       14,000,000  

New Jersey Health Care Facilities Financing Authority, Refunding RB

   

5.00%, 08/15/23(b)

    460       467,971  

5.00%, 07/01/24(b)

    2,950       3,060,881  

5.00%, 07/01/29

    285       291,814  

5.00%, 07/01/34

    1,000       1,051,341  

5.00%, 07/01/39

    4,060       4,173,749  

4.00%, 07/01/41

    1,000       970,292  

Series A, 4.00%, 07/01/32

    2,300       2,351,557  

Series A, 5.00%, 07/01/37

    5,000       5,226,955  

Series A, 5.00%, 07/01/43

    1,290       1,322,980  
   

 

 

 
      50,623,258  
Housing — 3.0%            

New Jersey Housing & Mortgage Finance Agency, RB, S/F Housing

   

Series H, 2.15%, 10/01/41

    910       665,701  

Series H, 2.30%, 10/01/46

    680       467,567  

Series H, 2.40%, 04/01/52

    680       446,181  

New Jersey Housing & Mortgage Finance Agency, Refunding RB, M/F Housing

   

Series A, (HUD SECT 8), 2.25%, 11/01/36

    350       281,315  

Series A, (HUD SECT 8), 2.45%, 11/01/45

    240       175,198  

Series A, (HUD SECT 8), 2.65%, 11/01/46

    350       246,932  

Series A, 4.00%, 11/01/48

    150       133,329  

Series A, (HUD SECT 8), 2.55%, 11/01/50

    220       153,905  

Series A, (HUD SECT 8), 2.70%, 11/01/51

    350       236,494  

Series A, 4.10%, 11/01/53

    100       94,166  

Series A, (HUD SECT 8), 2.63%, 11/01/56

    220       138,296  

Series A, (HUD SECT 8), 2.75%, 11/01/56

    350       229,053  

New Jersey Housing & Mortgage Finance Agency, Refunding RB, S/F Housing

   

Series A, 3.75%, 10/01/35

    900       865,788  

Series E, 2.25%, 10/01/40

    695       504,653  

Series E, 2.40%, 10/01/45

    530       359,570  

Newark Housing Authority, RB, M/F Housing

   

Series A, AMT, 5.00%, 12/01/30

    1,640       1,670,412  

Series A, AMT, 4.38%, 12/01/33

    2,515       2,533,644  
   

 

 

 
      9,202,204  
State — 20.9%            

Casino Reinvestment Development Authority, Inc., Refunding RB

   

Class D, (AGM), 4.00%, 11/01/34

    500       501,868  

Class D, 5.25%, 11/01/39

    1,020       1,042,345  

Class D, 5.25%, 11/01/44

    1,590       1,608,471  
Security   Par
(000)
    Value  
State (continued)            

Garden State Preservation Trust, RB, Series A, Class A, (AGM), 5.75%, 11/01/28

  $ 2,565     $ 2,819,520  

Garden State Preservation Trust, RB, CAB(e)

   

Series B, Class B, (AGM), 0.00%, 11/01/24

    10,000       9,446,980  

Series B, Class B, (AGM), 0.00%, 11/01/27

    4,135       3,501,162  

New Jersey Economic Development Authority, RB 4.00%, 06/15/49

    1,190       1,048,263  

Class A, 5.25%, 11/01/47

    2,200       2,307,083  

Series A, 5.00%, 06/15/42

    4,000       4,085,532  

Series DDD, 5.00%, 06/15/42

    3,000       3,071,817  

Series EEE, 5.00%, 06/15/43

    5,505       5,636,603  

New Jersey Economic Development Authority, Refunding RB

   

Series PP, 4.00%, 06/15/24(b)

    4,875       4,980,670  

Sub-Series A, 5.00%, 07/01/33

    125       128,898  

Sub-Series A, 4.00%, 07/01/34

    165       158,970  

New Jersey Economic Development Authority, Refunding SAB, 6.50%, 04/01/28

    2,194       2,258,183  

New Jersey Educational Facilities Authority, RB, Series A, 5.00%, 09/01/33

    1,750       1,800,225  

New Jersey Health Care Facilities Financing Authority, RB, 5.00%, 09/15/29

    2,000       2,031,756  

New Jersey Transportation Trust Fund Authority, RB

   

Series AA, 4.00%, 06/15/45

    1,775       1,613,427  

Series AA, 5.00%, 06/15/45

    1,000       1,009,442  

Series BB, 4.00%, 06/15/50

    2,500       2,193,163  

Series S, 5.25%, 06/15/43

    1,720       1,784,909  

New Jersey Transportation Trust Fund Authority, RB, CAB, Series A, Class A, 0.00%, 12/15/38(e)

    10,000       4,576,970  

New Jersey Transportation Trust Fund Authority, Refunding RB, Series A, 5.00%, 12/15/32

    1,775       1,892,201  

South Jersey Port Corp., ARB, Series B, AMT, 5.00%, 01/01/42

    2,380       2,374,652  

State of New Jersey, GO, 2.00%, 06/01/37

    2,600       2,001,532  
   

 

 

 
      63,874,642  
Tobacco — 1.3%            

Tobacco Settlement Financing Corp., Refunding RB

   

Series A, 5.00%, 06/01/46

    1,000       980,798  

Series A, 5.25%, 06/01/46

    1,000       1,006,818  

Sub-Series B, 5.00%, 06/01/46

    2,000       2,001,636  
   

 

 

 
      3,989,252  
Transportation — 12.8%            

New Jersey Economic Development Authority, RB

   

AMT, (AGM), 5.13%, 01/01/39

    1,000       1,009,048  

AMT, (AGM), 5.13%, 07/01/42

    1,000       1,009,201  

AMT, 5.38%, 01/01/43

    905       906,683  

New Jersey Transportation Trust Fund Authority, RB

   

5.00%, 06/15/42(f)

    210       217,659  

5.25%, 06/15/46(f)

    210       221,099  

Class BB, 5.00%, 06/15/36

    1,250       1,331,019  

Class BB, 4.00%, 06/15/37

    700       670,876  

Class BB, 4.00%, 06/15/50

    650       570,222  

Series A, 5.00%, 06/15/30

    1,250       1,313,771  

Series AA, 5.25%, 06/15/31

    2,000       2,024,344  

Series AA, 4.00%, 06/15/36

    1,435       1,400,805  

Series AA, 4.00%, 06/15/50

    1,500       1,315,898  

Series AA, Class AA, 5.00%, 06/15/45

    2,500       2,568,455  
 

 

 

S C H E D U L E   O F   I N V E S T M E N T S

  31


Schedule of Investments (unaudited) (continued)

November 30, 2022

  

BlackRock New Jersey Municipal Bond Fund

(Percentages shown are based on Net Assets)

 

Security   Par
(000)
    Value  
Transportation (continued)  

New Jersey Transportation Trust Fund Authority, RB (continued)

   

Series B, 5.00%, 06/15/33

  $ 550     $ 584,940  

Series BB, 4.00%, 06/15/44

    2,335       2,126,793  

New Jersey Transportation Trust Fund Authority, RB, CAB(e)

   

Series A, 0.00%, 12/15/32

    10,000       6,530,720  

Series A, Class A, 0.00%, 12/15/35

    8,900       4,862,417  

New Jersey Transportation Trust Fund Authority, Refunding RB

   

Series A, 5.00%, 06/15/31

    2,730       2,853,841  

Series A, 5.00%, 12/15/35

    455       477,066  

Series A, 4.00%, 06/15/36

    1,700       1,659,491  

New Jersey Turnpike Authority, RB, Series E, 5.00%, 01/01/45

    2,000       2,037,088  

New Jersey Turnpike Authority, Refunding RB, Series A, (BHAC-CR AGM), 5.25%, 01/01/30

    1,000       1,146,723  

South Jersey Transportation Authority, Refunding RB

   

Series A, 5.00%, 11/01/32

    440       450,976  

Series A, 5.00%, 11/01/33

    250       255,395  

Series A, 5.00%, 11/01/39

    1,500       1,514,332  
   

 

 

 
      39,058,862  
Utilities — 0.1%            

Industrial Pollution Control Financing Authority of Gloucester County, Refunding RB, Series A, Class A, AMT, 5.00%, 12/01/24(g)

    205       208,743  

New Jersey Infrastructure Bank, RB, 2.00%, 09/01/43

    240       152,263  
   

 

 

 
      361,006  
   

 

 

 

Total Municipal Bonds in New Jersey

      265,742,199  
New York — 4.3%            
Transportation — 4.3%            

Port Authority of New York & New Jersey, ARB

   

Consolidated, 93rd Series, 6.13%, 06/01/94

    1,000       1,037,093  

AMT, 5.00%, 11/01/33

    495       527,851  

218th Series, AMT, 5.00%, 11/01/32

    1,495       1,599,154  

Consolidated, 221st Series, AMT, 4.00%, 07/15/50

    1,335       1,194,937  

RB, AMT, 5.00%, 11/01/30

    1,000       1,076,521  

Port Authority of New York & New Jersey, Refunding ARB

   

194th Series, 5.25%, 10/15/55

    1,460       1,504,676  

Series 205th, 5.00%, 11/15/42

    1,975       2,071,613  

178th Series, AMT, 5.00%, 12/01/43

    285       287,093  

Consolidated, 186th Series, AMT, 5.00%, 10/15/44

    3,000       3,038,253  

Series 223, AMT, 4.00%, 07/15/41

    725       684,209  

Series 223, AMT, 4.00%, 07/15/46

    225       203,539  
   

 

 

 
Total Municipal Bonds in New York         13,224,939  
Pennsylvania — 0.9%            
Transportation — 0.9%            

Delaware River Joint Toll Bridge Commission, RB, 5.00%, 07/01/42

    1,130       1,178,411  

Delaware River Port Authority, RB, 5.00%, 01/01/40

    1,500       1,536,116  
   

 

 

 

Total Municipal Bonds in Pennsylvania

      2,714,527  
   

 

 

 
Security  

Par

(000)

    Value  
Puerto Rico — 3.0%  
State — 3.0%            

Commonwealth of Puerto Rico, GO, Series A1, Restructured, 5.63%, 07/01/29

  $ 1,043     $ 1,067,563  

Puerto Rico Sales Tax Financing Corp. Sales Tax Revenue, RB

   

Series A-1, Restructured, 4.75%, 07/01/53

    2,932       2,643,955  

Series A-1, Restructured, 5.00%, 07/01/58

    2,622       2,468,201  

Series A-2, Restructured, 4.78%, 07/01/58

    1,757       1,587,251  

Series A-2, Restructured, 4.33%, 07/01/40

    580       523,374  

Puerto Rico Sales Tax Financing Corp. Sales Tax Revenue, RB, CAB(e)

   

Series A-1, Restructured, 0.00%, 07/01/46

    2,674       673,551  

Series B-1, Restructured, 0.00%, 07/01/46

    567       144,741  
   

 

 

 

Total Municipal Bonds in Puerto Rico

      9,108,636  
   

 

 

 

Total Long-Term Investments — 95.4%
(Cost: $299,579,542)

      291,290,669  
   

 

 

 
     Shares         

Short-Term Securities

   
Money Market Funds — 3.4%            

BlackRock Liquidity Funds, MuniCash, Institutional Class, 1.59%(h)(i)

    10,207,996       10,209,017  
   

 

 

 

Total Short-Term Securities — 3.4%
(Cost: $10,207,236)

      10,209,017  
   

 

 

 

Total Investments — 98.8%
(Cost: $309,786,778)

      301,499,686  

Other Assets Less Liabilities — 1.2%

      3,774,692  
   

 

 

 

Net Assets — 100.0%

    $ 305,274,378  
   

 

 

 

 

(a) 

Variable rate security. Interest rate resets periodically. The rate shown is the effective interest rate as of period end. Security description also includes the reference rate and spread if published and available.

(b) 

U.S. Government securities held in escrow, are used to pay interest on this security as well as to retire the bond in full at the date indicated, typically at a premium to par.

(c) 

Security exempt from registration pursuant to Rule 144A under the Securities Act of 1933, as amended. These securities may be resold in transactions exempt from registration to qualified institutional investors.

(d) 

Variable rate security. Rate as of period end and maturity is the date the principal owed can be recovered through demand.

(e) 

Zero-coupon bond.

(f) 

When-issued security.

(g) 

Security is collateralized by municipal bonds or U.S. Treasury obligations.

(h) 

Affiliate of the Fund.

(i) 

Annualized 7-day yield as of period end.

 

 

For Fund compliance purposes, the Fund’s sector classifications refer to one or more of the sector sub-classifications used by one or more widely recognized market indexes or rating group indexes, and/or as defined by the investment adviser. These definitions may not apply for purposes of this report, which may combine such sector sub-classifications for reporting ease.

 

 

32  

2 0 2 2   B L A C K R O C K   S E M I - A N N U A L   R E P O R T   T O   S H A R E H O L D E R S


Schedule of Investments (unaudited) (continued)

November 30, 2022

  

BlackRock New Jersey Municipal Bond Fund

 

Affiliates

Investments in issuers considered to be affiliate(s) of the Fund during the six months ended November 30, 2022 for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:

 

                   
Affiliated Issuer  

Value at

05/31/22

   

Purchases

at Cost

   

Proceeds

from Sales

   

Net

Realized

Gain (Loss)

   

Change in

Unrealized

Appreciation

(Depreciation)

   

Value at

11/30/22

   

Shares

Held at

11/30/22

    Income    

Capital Gain

Distributions

from

Underlying

Funds

 

BlackRock Liquidity Funds, MuniCash, Institutional Class

  $ 13,301,815     $     $ (3,084,654 )(a)    $ (8,881   $ 737     $ 10,209,017       10,207,996     $  132,525     $  
       

 

 

   

 

 

   

 

 

     

 

 

   

 

 

 

 

  (a) 

Represents net amount purchased (sold).

 

Derivative Financial Instruments Outstanding as of Period End

Futures Contracts

 

         
Description   

Number of

Contracts

    

Expiration

Date

    

Notional

Amount (000)

    

Value/

Unrealized

Appreciation

(Depreciation)

 

Short Contracts

           

10-Year U.S. Treasury Note

     41        03/22/23      $ 4,665      $ (35,999

U.S. Long Bond

     50        03/22/23        6,381        (53,662

5-Year U.S. Treasury Note

     35        03/31/23        3,807        (30,060
           

 

 

 
            $ (119,721
           

 

 

 

Derivative Financial Instruments Categorized by Risk Exposure

As of period end, the fair values of derivative financial instruments located in the Statements of Assets and Liabilities were as follows:

 

               
     

Commodity

Contracts

     Credit
Contracts
    

Equity

Contracts

    

Foreign

Currency

Exchange

Contracts

    

Interest

Rate

Contracts

    

Other

Contracts

     Total  

Liabilities — Derivative Financial Instruments

                    

Futures contracts

                    

Unrealized depreciation on futures contracts(a)

   $      $      $      $      $     119,721      $      $  119,721  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

 

  (a) 

Net cumulative unrealized appreciation (depreciation) on futures contracts and centrally cleared swaps, if any, are reported in the Schedule of Investments. In the Statements of Assets and Liabilities, only current day’s variation margin is reported in receivables or payables and the net cumulative unrealized appreciation (depreciation) is included in accumulated earnings (loss).

 

For the period ended November 30, 2022, the effect of derivative financial instruments in the Statements of Operations was as follows:

 

               
     

Commodity

Contracts

    

Credit

Contracts

    

Equity

Contracts

    

Foreign

Currency

Exchange

Contracts

    

Interest

Rate

Contracts

    

Other

Contracts

     Total  

Net Realized Gain (Loss) from:

                    

Futures contracts

   $      $      $      $      $  2,363,475      $      $  2,363,475  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Net Change in Unrealized Appreciation (Depreciation) on:

                    

Futures contracts

   $      $      $      $      $ (457,158    $      $ (457,158
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Average Quarterly Balances of Outstanding Derivative Financial Instruments

 

Futures contracts:

        

Average notional value of contracts — short

   $ 20,476,696  

For more information about the Fund’s investment risks regarding derivative financial instruments, refer to the Notes to Financial Statements.

 

 

S C H E D U L E   O F   I N V E S T M E N T S

  33


Schedule of Investments (unaudited) (continued)

November 30, 2022

  

BlackRock New Jersey Municipal Bond Fund

 

Fair Value Hierarchy as of Period End

Various inputs are used in determining the fair value of financial instruments. For a description of the input levels and information about the Fund’s policy regarding valuation of financial instruments, refer to the Notes to Financial Statements.

The following table summarizes the Fund’s financial instruments categorized in the fair value hierarchy. The breakdown of the Fund’s financial instruments into major categories is disclosed in the Schedule of Investments above.

 

         
      Level 1      Level 2        Level 3        Total  

Assets

               

Investments

               

Long-Term Investments

               

Municipal Bonds

   $      $ 291,290,669        $        $ 291,290,669  

Short-Term Securities

               

Money Market Funds

     10,209,017                          10,209,017  
  

 

 

    

 

 

      

 

 

      

 

 

 
   $   10,209,017      $   291,290,669        $        $   301,499,686  
  

 

 

    

 

 

      

 

 

      

 

 

 

Derivative Financial Instruments(a)

               

Liabilities

               

Interest Rate Contracts

   $ (119,721 )      $        $               —        $ (119,721
  

 

 

    

 

 

      

 

 

      

 

 

 

 

  (a) 

Derivative financial instruments are futures contracts. Futures contracts are valued at the unrealized appreciation (depreciation) on the instrument.

 

See notes to financial statements.

 

 

34  

2 0 2 2   B L A C K R O C K   S E M I - A N N U A L   R E P O R T   T O   S H A R E H O L D E R S


Schedule of Investments (unaudited) 

November 30, 2022

  

BlackRock Pennsylvania Municipal Bond Fund

(Percentages shown are based on Net Assets)

 

Security  

Par

(000)

    Value  

Municipal Bonds

   
Guam — 0.2%            
Utilities — 0.2%            

Guam Government Waterworks Authority, RB, Series A, AMT, 5.00%, 01/01/50

  $ 820     $ 820,603  
   

 

 

 
Pennsylvania — 93.9%            
Corporate — 5.8%            

Lehigh County Industrial Development Authority, Refunding RB, Series A, 3.00%, 09/01/29

    3,100       2,996,847  

Pennsylvania Economic Development Financing Authority, RB

   

Class A, AMT, 2.30%, 06/01/41(a)

    13,335           12,949,205  

Series A, AMT, 0.58%, 08/01/37(a)

    5,000       4,765,550  

Series A, AMT, 3.25%, 08/01/39(b)

    2,800       2,180,786  

Pennsylvania Economic Development Financing Authority, Refunding RB, AMT, 5.50%, 11/01/44

    1,355       1,357,294  
   

 

 

 
      24,249,682  
County/City/Special District/School District — 15.4%  

Altoona Area School District, GO, Series A, AMT, (AGM, SAW), 5.00%, 12/01/36

    2,895       3,040,404  

Bethlehem Area School District, GO

   

Series A, AMT, (BAM SAW), 5.00%, 08/01/34

    2,390       2,505,633  

Series A, AMT, (BAM SAW), 5.00%, 08/01/35

    1,790       1,875,811  

Boyertown Area School District, GO

   

(SAW), 5.00%, 10/01/36

    890       914,205  

(SAW), 5.00%, 10/01/38

    1,335       1,367,892  

Bristol Township School District, GO, (BAM SAW), 5.00%, 06/01/42

    2,550       2,680,139  

Catasauqua Area School District, Refunding GO, (BAM SAW), 4.00%, 02/15/42

    2,255       2,150,165  

City of Lancaster Pennsylvania, GO, (BAM), 4.00%, 11/01/42

    3,720       3,503,381  

City of Philadelphia Pennsylvania, GO, Series B, 5.00%, 02/01/39

    1,540       1,642,672  

City of Philadelphia Pennsylvania, Refunding GO, Series A, 5.00%, 08/01/37

    2,140       2,248,855  

Coatesville School District, GO, CAB(c)

   

Series A, (BAM SAW), 0.00%, 10/01/34

    290       174,089  

Series A, (BAM SAW), 0.00%, 10/01/37

        2,505       1,270,651  

Series A, Class A, (BAM SAW), 0.00%, 10/01/35

    2,565       1,456,356  

Coatesville School District, Refunding GO, CAB(c)

   

Series B, Class B, (BAM SAW), 0.00%, 10/01/33

    500       316,575  

Series B, Class B, (BAM SAW), 0.00%, 10/01/34

    980       588,301  

Series C, Class C, (BAM SAW), 0.00%, 10/01/33

    640       405,216  

County of Lancaster Pennsylvania, Refunding GO
4.00%, 11/01/34

    500       510,046  

4.00%, 11/01/35

    520       528,043  

4.00%, 11/01/36

    540       546,227  

4.00%, 11/01/37

    565       569,224  

4.00%, 11/01/38

    585       588,056  

Dallastown Area School District, Refunding GO, (SAW), 5.00%, 04/15/34

    1,835       1,913,342  

Fox Chapel Area School District, GO

   

(SAW), 5.00%, 02/01/39

    4,100       4,348,275  

(SAW), 5.00%, 02/01/42

    6,365       6,698,831  

Mechanicsburg Area School District, GO

   

Series A, AMT, (SAW), 4.00%, 03/01/40

    2,160       2,122,576  

Series A, AMT, (SAW), 4.00%, 03/01/42

    2,335       2,259,727  
Security  

Par

(000)

    Value  
County/City/Special District/School District (continued)  

North Allegheny School District, GO, (SAW), 4.00%, 05/01/39

  $ 1,000     $ 981,660  

School District of Philadelphia, Refunding GO, Series F, (SAW), 5.00%, 09/01/37

    1,815       1,876,588  

Springfield School District/Delaware County, GO, (SAW), 5.00%, 03/01/40

    1,710       1,807,372  

State Public School Building Authority, Refunding RB, Series A, (AGM), 5.00%, 06/01/33

    5,000       5,320,820  

Tredyffrin Easttown School District, GO, (SAW), 5.00%, 02/15/39

    1,130       1,208,006  

West Shore School District, GO

   

(SAW), 5.00%, 11/15/43

    4,045       4,229,412  

(SAW), 5.00%, 11/15/48

    1,975       2,048,320  
   

 

 

 
          63,696,870  
Education — 20.6%            

Berks County Municipal Authority, Refunding RB

   

5.00%, 10/01/39

    290       270,885  

5.00%, 10/01/49

    795       719,728  

Bethlehem Redevelopment Authority, Refunding RB

   

5.00%, 10/01/33

    320       334,270  

4.00%, 10/01/38

    330       299,968  

Chester County Industrial Development Authority, RB

   

4.00%, 12/01/49

    3,750       3,465,559  

4.00%, 12/01/51

    4,000       3,666,256  

Delaware County Authority, RB, 5.00%, 08/01/40

    1,795       1,851,302  

East Hempfield Township Industrial Development Authority, RB(d)

   

5.00%, 07/01/23

    1,215       1,231,842  

5.00%, 07/01/25

    1,810       1,915,241  

Latrobe Industrial Development Authority, Refunding RB, 4.00%, 03/01/46

    515       420,586  

Lehigh County Industrial Development Authority, Refunding RB, 4.00%, 05/01/51

    1,545       1,114,776  

Northampton County General Purpose Authority, Refunding RB, 4.00%, 11/01/38

    6,000       5,906,034  

Pennsylvania Higher Education Assistance Agency, RB

   

Series A, AMT, 5.00%, 06/01/30

    260       279,599  

Series A, AMT, 2.63%, 06/01/42

    2,000       1,690,530  

Series B, AMT, Subordinate, 3.13%, 06/01/48

    650       469,710  

Pennsylvania Higher Educational Facilities Authority, RB, Series AT-1, 4.00%, 06/15/34

    5,790       5,853,875  

Pennsylvania Higher Educational Facilities Authority, Refunding RB

   

4.00%, 05/01/36

    500       479,616  

5.00%, 05/01/37

    1,595       1,517,328  

5.00%, 05/01/41

    810       831,023  

Series A, 5.25%, 07/15/23(d)

    2,420       2,459,349  

Series A, 5.50%, 07/15/23(d)

    365       371,478  

Series A, 5.00%, 11/01/25

    200       206,481  

Series A, 5.00%, 11/01/26

    100       103,922  

Series A, 5.00%, 11/01/27

    150       156,694  

Series A, 5.00%, 11/01/29

    1,150       1,209,227  

Series A, (AGM), 4.00%, 05/01/50

        5,000       4,498,580  

Series A, Class A, 5.00%, 11/01/31

    205       216,813  

Pennsylvania State University, RB

   

5.00%, 09/01/48

    2,615       2,769,594  

Series A, AMT, 5.00%, 09/01/43

    3,935       4,253,971  

Philadelphia Authority for Industrial Development, RB

   

4.00%, 06/15/29

    485       451,930  

5.00%, 06/15/39

    840       782,899  
 

 

 

S C H E D U L E   O F   I N V E S T M E N T S

  35


Schedule of Investments (unaudited) (continued)

November 30, 2022

  

BlackRock Pennsylvania Municipal Bond Fund

(Percentages shown are based on Net Assets)

 

Security  

Par

(000)

    Value  
Education (continued)            

Philadelphia Authority for Industrial Development, RB (continued)

   

4.00%, 06/01/41

  $ 490     $ 392,914  

4.00%, 12/01/48

    8,090       7,946,742  

5.00%, 06/15/50

    800       688,051  

4.00%, 06/01/51

    395       284,849  

5.25%, 11/01/52

        2,145       2,193,250  

4.00%, 06/01/56

    560       389,597  

Series A, 5.25%, 06/15/52

    625       588,413  

Philadelphia Authority for Industrial Development, Refunding RB

   

5.00%, 05/01/30

    745       772,583  

5.00%, 05/01/40

    675       676,148  

5.00%, 06/15/40(b)

    1,180       1,126,081  

4.00%, 05/01/42

    4,780       3,820,195  

5.00%, 05/01/50

    2,010       1,876,852  

5.00%, 06/15/50(b)

    585       523,790  

Series 2015, 5.00%, 04/01/45

    3,330       3,399,910  

Sports & Exhibition Authority, of Pittsburgh and Allegheny County RB, Series A, VRDN, (AGM), 1.91%, 12/07/22(a)(e)

    7,165       7,165,000  

University of Pittsburgh-of the Commonwealth System of Higher Education, RB, 2.26%, 02/15/24(a)

    3,620       3,636,782  
   

 

 

 
          85,280,223  
Health — 19.1%            

Allegheny County Hospital Development Authority, RB, Series D2, 2.60%, 11/15/47(a)

    2,865       2,904,889  

Allegheny County Hospital Development Authority, Refunding RB

   

Series A, 4.00%, 04/01/37

    4,300       4,143,351  

Series A, 4.00%, 07/15/39

    2,250       2,160,491  

Series A, 5.00%, 04/01/47

    1,950       1,967,733  

Bucks County Industrial Development Authority, RB

   

4.00%, 08/15/44

    1,690       1,500,178  

4.00%, 07/01/51

    2,500       1,778,540  

Bucks County Industrial Development Authority, Refunding RB, 5.00%, 10/01/37

    1,560       1,565,393  

Chester County Health and Education Facilities Authority, RB, Series A, 4.00%, 09/01/39

    970       930,809  

Chester County Health and Education Facilities Authority, Refunding RB, Series A, Class A, 5.25%, 12/01/45

    1,500       1,342,535  

Cumberland County Municipal Authority, Refunding RB

   

5.00%, 01/01/25(d)

    430       450,204  

4.00%, 01/01/36

    645       580,585  

4.13%, 01/01/38

    260       231,628  

5.00%, 01/01/38

    2,185       2,191,902  

5.00%, 01/01/39(d)

    1,120       1,249,993  

Doylestown Hospital Authority, RB

   

Series A, 4.00%, 07/01/45

    1,250       902,145  

Series A, 5.00%, 07/01/49

    1,500       1,239,365  

DuBois Hospital Authority, Refunding RB, 4.00%, 07/15/48

    3,440       2,900,474  

Geisinger Authority, Refunding RB, Series A-2, 5.00%, 02/15/39

    5,950       6,128,381  

Hospitals & Higher Education Facilities Authority of Philadelphia, Refunding RB, (AGM), 4.00%, 07/01/40

    1,600       1,538,259  

Hospitals & Higher Education Facilities Authority, of Philadelphia, Refunding RB,
5.00%, 07/01/33

    1,000       1,023,279  
Security  

Par

(000)

    Value  
Health (continued)            

Lancaster County Hospital Authority, Refunding RB, 5.00%, 11/01/35

  $ 925     $ 945,877  

Lancaster Industrial Development Authority, RB

   

4.00%, 12/01/44

    730       662,328  

5.00%, 12/01/44

    1,170       1,195,563  

4.00%, 12/01/49

    985       855,623  

Montgomery County Higher Education and Health Authority, Refunding RB

   

Series A, 5.00%, 09/01/37

    1,365       1,425,003  

RB, 4.00%, 09/01/44

    7,550       6,797,688  

Montgomery County Industrial Development Authority, Refunding RB, 5.25%, 01/01/40

    5,000       4,962,735  

Moon Industrial Development Authority, Refunding RB, 6.00%, 07/01/45

    2,250       1,931,283  

Mount Lebanon Hospital Authority, RB, 4.00%, 07/01/48

    2,910       2,688,334  

Northampton County General Purpose Authority, Refunding RB, 5.00%, 08/15/46

    1,350       1,355,041  

Pennsylvania Economic Development Financing Authority, RB, Series B, 4.00%, 03/15/40

        2,000       1,923,556  

Pennsylvania Economic Development Financing Authority, Refunding RB, Series A, 4.00%, 11/15/42

    4,000       3,761,364  

Pottsville Hospital Authority, Refunding RB, Series B, 5.00%, 07/01/41

    5,000       5,067,665  

St. Mary Hospital Authority, Refunding RB

   

5.00%, 12/01/28(d)

    4,065       4,594,190  

5.00%, 12/01/48

    2,035       2,084,935  

West Cornwall Township Municipal Authority, Refunding RB

   

Series A, 4.00%, 11/15/36

    500       449,832  

Series A, 4.00%, 11/15/41

    445       380,226  

Series A, 4.00%, 11/15/46

    715       583,326  

Westmoreland County Industrial Development Authority, Refunding RB, Series A, 4.00%, 07/01/37

    1,040       910,963  
   

 

 

 
          79,305,666  
Housing — 3.7%            

Pennsylvania Housing Finance Agency, RB, S/F Housing

   

Series 137, 2.45%, 10/01/41

    1,315       950,274  

Series 137, 2.60%, 04/01/46

    5,270       3,621,049  

Pennsylvania Housing Finance Agency, Refunding RB, S/F Housing

   

Series 136, 2.55%, 10/01/51

    2,250       1,432,762  

Series 2022, 4.15%, 10/01/42

    3,000       2,802,084  

Philadelphia Authority for Industrial Development, RB, M/F Housing(f)(g)

   

Series A, 3.50%, 12/01/36

    1,260       983,955  

Series A, 4.00%, 12/01/46

    5,740       4,167,022  

Series A, 4.00%, 12/01/51

    2,300       1,595,089  
   

 

 

 
      15,552,235  
State — 5.1%            

Allentown Neighborhood Improvement Zone Development Authority, RB, 5.00%, 05/01/42(b)

    330       297,681  

Allentown Neighborhood Improvement Zone Development Authority, Refunding RB, 5.00%, 05/01/42

    3,770       3,666,057  

Chester County Industrial Development Authority, SAB(b)
4.25%, 03/01/35

    1,280       1,181,548  

5.00%, 03/01/38

    483       465,500  

5.13%, 03/01/48

    916       847,720  

4.75%, 03/01/50

    2,720       2,400,090  
 

 

 

36  

2 0 2 2   B L A C K R O C K   S E M I - A N N U A L   R E P O R T   T O   S H A R E H O L D E R S


Schedule of Investments (unaudited) (continued)

November 30, 2022

  

BlackRock Pennsylvania Municipal Bond Fund

(Percentages shown are based on Net Assets)

 

Security  

Par

(000)

    Value  
State (continued)            

Commonwealth Financing Authority, RB, 5.00%, 06/01/35

  $ 2,205     $ 2,338,777  

Northampton County Industrial Development Authority, TA, 7.00%, 07/01/32

    1,425       1,433,821  

Pennsylvania Economic Development Financing Authority, RB, AMT, 5.00%, 06/30/42

    2,620       2,631,324  

Pennsylvania Turnpike Commission Oil Franchise Tax Revenue, RB

   

Sub-Series B, 5.25%, 12/01/48

        3,215       3,309,299  

Series A, AMT, 5.25%, 12/01/44

    1,500       1,594,036  

Redevelopment Authority of The County of Washington, Refunding TA

   

4.00%, 07/01/23

    195       194,347  

5.00%, 07/01/28

    600       601,870  
   

 

 

 
      20,962,070  
Transportation — 15.2%            

City of Philadelphia Pennsylvania Airport Revenue, Refunding ARB

   

AMT, (AGM), 4.00%, 07/01/40

    1,075       1,008,348  

Series B, AMT, 5.00%, 07/01/37

    1,800       1,843,774  

Delaware River Joint Toll Bridge Commission, RB, 5.00%, 07/01/42

    4,045       4,218,296  

Pennsylvania Turnpike Commission, RB

   

Series A, 5.50%, 12/01/42

    2,515       2,635,345  

Series A-1, 5.00%, 12/01/41

    100       103,553  

Series B, 5.00%, 12/01/35

    885       982,008  

Sub-Series B-1, 5.00%, 06/01/42

    5,205       5,342,157  

Sub-Series B-1, 5.25%, 06/01/47

    1,000       1,029,947  

Series A, Subordinate, 5.00%, 12/01/37

    2,660       2,830,956  

Series A, Subordinate, 5.00%, 12/01/39

    2,075       2,192,833  

Series B, Subordinate, 3.00%, 12/01/51

    1,580       1,027,958  

Pennsylvania Turnpike Commission, RB, CAB(c)

   

Sub-Series A-3, (AGM), 0.00%, 12/01/40

    1,820       807,536  

Sub-Series A-3, 0.00%, 12/01/42

    5,740       2,136,864  

Pennsylvania Turnpike Commission, Refunding RB
5.25%, 12/01/52(h)

    1,225       1,310,251  

Series A-1, 5.25%, 12/01/45

    4,730       4,840,214  

Series B-2, (AGM), 5.00%, 06/01/35

    2,900       3,108,284  

Series C, 5.00%, 12/01/46

    825       872,560  

Series C, 3.00%, 12/01/51

    1,780       1,288,699  

VRDN, 1.86%, 12/07/22(a)(e)

    15,000       15,000,000  

Southeastern Pennsylvania Transportation Authority, RB
5.00%, 06/01/32

    1,925       2,123,140  

5.25%, 06/01/47

    3,695       4,039,496  

5.25%, 06/01/52

    2,000       2,167,272  

Susquehanna Area Regional Airport Authority, Refunding RB, AMT, 5.00%, 01/01/38

    2,200       2,203,969  
   

 

 

 
          63,113,460  
Utilities — 9.0%            

Aliquippa Municipal Water Authority Water & Sewer Revenue, RB, (BAM),
4.00%, 11/15/51

    2,405       2,144,209  

Allegheny County Sanitary Authority, RB, 5.00%, 06/01/43

    4,000       4,210,108  

City of Philadelphia Pennsylvania Water & Wastewater Revenue, RB

   

Series C, 5.50%, 06/01/47

    3,100       3,440,740  

Series A, AMT, 5.00%, 10/01/43

    3,460       3,644,411  
Security  

Par

(000)

    Value  
Utilities (continued)            

City of Philadelphia Pennsylvania Water & Wastewater Revenue, RB (continued)

   

Series A, AMT, 5.00%, 11/01/45

  $ 3,210     $ 3,403,900  

Series A, AMT, 5.25%, 10/01/52

    1,190       1,238,862  

Delaware County Regional Water Quality Control Authority, RB, 5.00%, 05/01/23(d)

    980       989,812  

New Kensington Municipal Sanitary Authority, RB, (AGM), 3.25%, 12/01/47

    2,055       1,755,196  

Oxford Area Sewer Authority, Refunding RB

   

(BAM), 3.00%, 07/01/35

    155       142,693  

(BAM), 3.00%, 07/01/46

        2,395       1,833,638  

(BAM), 2.38%, 07/01/55

    915       515,884  

Pennsylvania Economic Development Financing Authority, Refunding RB, Class B, VRDN, 2.80%, 12/07/22(a)(e)

    2,000       2,000,000  

Philadelphia Gas Works Co., Refunding RB 5.00%, 08/01/30

    700       731,444  

5.00%, 08/01/31

    900       937,866  

5.00%, 08/01/32

    1,200       1,246,103  

5.00%, 08/01/33

    600       619,646  

5.00%, 08/01/34

    1,050       1,082,002  

Pittsburgh Water & Sewer Authority, RB, Series A, 1st Lien, (AGM), 5.00%, 09/01/44

    2,045       2,158,275  

Pittsburgh Water & Sewer Authority, Refunding RB, Series C, Class C, (AGM), 2.55%, 09/01/40(a)

    3,620       3,628,015  

Williamsport Sanitary Authority, Refunding RB, (BAM), 4.00%, 01/01/40

    1,420       1,409,286  
   

 

 

 
          37,132,090  
   

 

 

 
Total Municipal Bonds in Pennsylvania         389,292,296  
Puerto Rico — 2.9%            
State — 2.9%            

Commonwealth of Puerto Rico, GO, Series A1, Restructured, 5.63%, 07/01/29

    1,643       1,680,878  

Puerto Rico Sales Tax Financing Corp. Sales Tax Revenue, RB

   

Series A-1, Restructured, 4.75%, 07/01/53

    4,797       4,325,733  

Series A-2, Restructured, 4.78%, 07/01/58

    3,034       2,740,876  

Series A-2, Restructured, 4.33%, 07/01/40

    1,950       1,759,620  

Puerto Rico Sales Tax Financing Corp. Sales Tax Revenue, RB, CAB(c)

   

Series A-1, Restructured, 0.00%, 07/01/46

    5,314       1,338,538  

Series B-1, Restructured, 0.00%, 07/01/46

    925       236,129  
   

 

 

 

Total Municipal Bonds in Puerto Rico

      12,081,774  
   

 

 

 

Total Long-Term Investments — 97.0%
(Cost: $429,536,444)

      402,194,673  
   

 

 

 
 

 

 

S C H E D U L E   O F   I N V E S T M E N T S

  37


Schedule of Investments (unaudited) (continued)

November 30, 2022

  

BlackRock Pennsylvania Municipal Bond Fund

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  

 

 

Short-Term Securities

   
Money Market Funds — 1.1%            

BlackRock Liquidity Funds, MuniCash, Institutional Class, 1.59%(i)(j)

    4,432,232     $ 4,432,675  
   

 

 

 

Total Short-Term Securities — 1.1%
(Cost: $4,432,232)

      4,432,675  
   

 

 

 

Total Investments — 98.1%
(Cost: $433,968,676)

      406,627,348  

Other Assets Less Liabilities — 1.9%

      7,985,552  
   

 

 

 

Net Assets — 100.0%

    $ 414,612,900  
   

 

 

 

 

(a) 

Variable rate security. Interest rate resets periodically. The rate shown is the effective interest rate as of period end. Security description also includes the reference rate and spread if published and available.

(b) 

Security exempt from registration pursuant to Rule 144A under the Securities Act of 1933, as amended. These securities may be resold in transactions exempt from registration to qualified institutional investors.

 

(c) 

Zero-coupon bond.

(d) 

U.S. Government securities held in escrow, are used to pay interest on this security as well as to retire the bond in full at the date indicated, typically at a premium to par.

(e) 

Variable rate security. Rate as of period end and maturity is the date the principal owed can be recovered through demand.

(f) 

Issuer filed for bankruptcy and/or is in default.

(g) 

Non-income producing security.

(h) 

When-issued security.

(i) 

Affiliate of the Fund.

(j) 

Annualized 7-day yield as of period end.

 

For Fund compliance purposes, the Fund’s sector classifications refer to one or more of the sector sub-classifications used by one or more widely recognized market indexes or rating group indexes, and/or as defined by the investment adviser. These definitions may not apply for purposes of this report, which may combine such sector sub-classifications for reporting ease.

Affiliates

Investments in issuers considered to be affiliate(s) of the Fund during the six months ended November 30, 2022 for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:

 

 

 
Affiliated Issuer   

Value at

05/31/22

    

Purchases

at Cost

    

Proceeds

from Sales

    

Net

Realized

Gain (Loss)

    

Change in

Unrealized

Appreciation

(Depreciation)

    

Value at

11/30/22

    

Shares

Held at

11/30/22

     Income     

Capital Gain

Distributions

from

Underlying

Funds

 

 

 

BlackRock Liquidity Funds, MuniCash, Institutional Class

   $ 14,915,694      $      $ (10,475,572 )(a)     $ (7,116    $ (331    $ 4,432,675        4,432,232      $ 90,394      $  
           

 

 

    

 

 

    

 

 

       

 

 

    

 

 

 

 

  (a) 

Represents net amount purchased (sold).

 

Derivative Financial Instruments Outstanding as of Period End

Futures Contracts

 

 

 
Description   

Number of

Contracts

     Expiration
Date
    

Notional

Amount (000)

    

Value/

Unrealized

Appreciation

(Depreciation)

 

 

 

Short Contracts

           

10-Year U.S. Treasury Note

     53        03/22/23      $ 6,030      $ (46,670

U.S. Long Bond

     83        03/22/23        10,593        (89,079

5-Year U.S. Treasury Note

     46        03/31/23        5,004        (39,507
           

 

 

 
            $ (175,256
           

 

 

 

 

 

38  

2 0 2 2   B L A C K R O C K   S E M I - A N N U A L   R E P O R T   T O   S H A R E H O L D E R S


Schedule of Investments (unaudited) (continued)

November 30, 2022

  

BlackRock Pennsylvania Municipal Bond Fund

 

Derivative Financial Instruments Categorized by Risk Exposure

As of period end, the fair values of derivative financial instruments located in the Statements of Assets and Liabilities were as follows:

 

 

 
    

Commodity

Contracts

    

Credit

Contracts

    

Equity

Contracts

    

Foreign

Currency

Exchange

Contracts

    

Interest

Rate

Contracts

    

Other

Contracts

     Total  

 

 

Liabilities — Derivative Financial Instruments

                    

Futures contracts

                    

Unrealized depreciation on futures contracts(a)

   $      $      $      $      $   175,256      $      $ 175,256  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

 

  (a) 

Net cumulative unrealized appreciation (depreciation) on futures contracts and centrally cleared swaps, if any, are reported in the Schedule of Investments. In the Statements of Assets and Liabilities, only current day’s variation margin is reported in receivables or payables and the net cumulative unrealized appreciation (depreciation) is included in accumulated earnings (loss).

 

For the period ended November 30, 2022, the effect of derivative financial instruments in the Statements of Operations was as follows:

 

 

 
    

Commodity

Contracts

    

Credit

Contracts

    

Equity

Contracts

    

Foreign

Currency

Exchange

Contracts

    

Interest

Rate

Contracts

    

Other

Contracts

     Total  

 

 

Net Realized Gain (Loss) from:

                    

Futures contracts

   $      $      $      $      $   3,468,903      $      $ 3,468,903  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Net Change in Unrealized Appreciation (Depreciation) on:

                    

Futures contracts

   $      $      $      $      $ (731,622    $      $ (731,622
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Average Quarterly Balances of Outstanding Derivative Financial Instruments

 

 

 

Futures contracts:

  

Average notional value of contracts — short

   $ 31,704,039  

 

 

For more information about the Fund’s investment risks regarding derivative financial instruments, refer to the Notes to Financial Statements.

Fair Value Hierarchy as of Period End

Various inputs are used in determining the fair value of financial instruments. For a description of the input levels and information about the Fund’s policy regarding valuation of financial instruments, refer to the Notes to Financial Statements.

The following table summarizes the Fund’s financial instruments categorized in the fair value hierarchy. The breakdown of the Fund’s financial instruments into major categories is disclosed in the Schedule of Investments above.

 

 

 
     Level 1        Level 2        Level 3        Total  

 

 

Assets

                 

Investments

                 

Long-Term Investments

                 

Municipal Bonds

   $        $ 402,194,673        $        $ 402,194,673  

Short-Term Securities

                 

Money Market Funds

     4,432,675                            4,432,675  
  

 

 

      

 

 

      

 

 

      

 

 

 
   $   4,432,675        $ 402,194,673        $        $ 406,627,348  
  

 

 

      

 

 

      

 

 

      

 

 

 

Derivative Financial Instruments(a)

                 

Liabilities

                 

Interest Rate Contracts

   $ (175,256      $        $                 —        $ (175,256
  

 

 

      

 

 

      

 

 

      

 

 

 

 

  (a) 

Derivative financial instruments are futures contracts. Futures contracts are valued at the unrealized appreciation (depreciation) on the instrument.

 

See notes to financial statements.

 

 

S C H E D U L E   O F   I N V E S T M E N T S

  39


Schedule of Investments (unaudited) 

November 30, 2022

  

BlackRock Impact Municipal Fund

(Percentages shown are based on Net Assets)

 

Security   Par
(000)
    Value  

Municipal Bonds

   
Alabama — 0.2%            

Sumter County Industrial Development Authority, RB, AMT, 6.00%, 07/15/52(a)

  $ 100     $ 92,828  
   

 

 

 
Arizona — 1.9%            

Arizona Industrial Development Authority, RB, Series A, 4.00%, 02/01/50

    1,000       883,140  
   

 

 

 
Arkansas — 2.3%            

University of Arkansas, RB, Series A, 5.00%, 04/01/47

    1,000       1,079,226  
   

 

 

 
California — 14.5%            

California Community Choice Financing Authority, RB, Series A, 4.00%, 10/01/52(a)

      1,500       1,510,497  

California Public Finance Authority, RB, Series A, 4.00%, 07/15/51

    1,000       962,682  

California School Finance Authority, RB, 5.00%, 08/01/42(b)

    125       126,163  

California State Public Works Board, RB, Series D, Class D, 4.00%, 05/01/45

    1,000       976,884  

City of Los Angeles California Wastewater System Revenue, Refunding RB, Series A, Subordinate, 4.00%, 06/01/52

    1,500       1,419,492  

CSCDA Community Improvement Authority, RB, M/F Housing(b)
3.25%, 04/01/57

    250       172,985  

Series A-2, 3.00%, 02/01/57

    350       226,002  

Los Angeles Unified School District, CA ,GO, 4.00%, 07/01/37

    500       511,821  

Val Verde Unified School District, GO, Series B, Election 2020, (AGM), 4.00%, 08/01/51

    1,000       930,902  
   

 

 

 
          6,837,428  
Colorado — 1.2%            

Denver City & County School District No. 1, GO, Series A, AMT, (SAW), 5.00%, 12/01/42

    500       560,201  
   

 

 

 
Connecticut — 5.4%            

Connecticut State Health & Educational Facilities Authority, RB, Series A, Class A, 4.00%, 07/01/51

    500       440,757  

State of Connecticut, GO, Series 2020, 4.00%, 01/15/37

    1,000       1,007,698  

University of Connecticut, RB, Series A, AMT, 5.00%, 05/01/39

    1,000       1,098,317  
   

 

 

 
      2,546,772  
Delaware — 0.1%            

Affordable Housing Opportunities Trust, RB, Series AH-01, Class B, 6.88%, 05/01/39(b)(c)

    80       68,769  
   

 

 

 
District of Columbia — 2.3%            

District of Columbia, RB, Class A-AMT, AMT, 5.50%, 02/28/34

    1,000       1,084,361  
   

 

 

 
Florida — 5.6%            

Brevard County Health Facilities Authority, Refunding RB, Series A, 4.00%, 04/01/52

    1,000       872,689  

County of Miami-Dade Florida Water & Sewer System Revenue, RB, 4.00%, 10/01/48

    1,000       940,576  

Florida Development Finance Corp., RB

   

Series A, Class A, 4.00%, 06/15/42

    500       438,476  

Series A, Class A, 5.00%, 06/15/47

    375       369,387  
   

 

 

 
      2,621,128  
Security   Par
(000)
    Value  
Georgia — 0.7%            

Georgia Housing & Finance Authority, Refunding RB, S/F Housing, Series A, 4.00%, 06/01/49

  $ 325     $ 332,745  
   

 

 

 
Illinois — 4.4%            

Chicago Board of Education, GO, Series A, AMT, 5.00%, 12/01/33

    500       498,952  

Chicago Transit Authority, Sales Tax Receipts Fund, Series A, 2nd Lien, 5.00%, 12/01/57

      1,200       1,204,395  

Illinois Housing Development Authority, RB, M/F Housing, Series G, 6.25%, 10/01/52

    350       382,413  
   

 

 

 
      2,085,760  
Kentucky — 2.7%            

City of Henderson KY, RB, Series SE, Class A, AMT, 4.70%, 01/01/52(b)

    250       222,880  

Louisville/Jefferson County Metropolitan Government, RB, Series A, (AGM), 5.00%, 05/15/47

    1,000       1,029,523  
   

 

 

 
      1,252,403  
Louisiana — 2.6%            

Jefferson Parish Consolidated Sewerage District
No 1, RB, (BAM), 4.00%, 02/01/39

    1,000       978,462  

Louisiana Public Facilities Authority, RB, Series A, 6.38%, 06/01/52(b)

    250       253,056  
   

 

 

 
          1,231,518  
Maine — 0.1%            

Finance Authority of Maine, RB, AMT, 8.00%, 12/01/51(b)

    100       68,703  
   

 

 

 
Maryland — 1.6%            

Maryland Economic Development Corp., RB, Class B, AMT, 5.25%, 06/30/47

    715       735,857  
   

 

 

 
Massachusetts — 5.5%            

Massachusetts Bay Transportation Authority Assessment Revenue, Refunding RB, Series A, 5.00%, 07/01/52

    1,500       1,649,371  

University of Massachusetts Building Authority, RB, Series 1, 4.00%, 11/01/46

    1,000       969,988  
   

 

 

 
      2,619,359  
Michigan — 2.1%            

Ludington Area School District, GO, Series II, (BAM Q-SBLF), 4.00%, 05/01/51

    1,000       972,937  
   

 

 

 
Minnesota — 1.9%            

Duluth Economic Development Authority, RB, Class B, 5.25%, 06/15/42

    500       508,078  

Minnesota Housing Finance Agency, RB, S/F Housing, Series N, 6.00%, 01/01/53

    340       369,477  
   

 

 

 
      877,555  
Mississippi — 0.2%            

Mississippi Business Finance Corp., RB, AMT, 7.75%, 07/15/47(a)

    100       100,407  
   

 

 

 
New Hampshire — 1.5%            

New Hampshire Housing Finance Authority, RB, M/F Housing, Series 2022, 4.38%, 09/20/36

    746       714,035  
   

 

 

 
New Jersey — 0.3%            

Camden County Improvement Authority, RB, 6.00%, 06/15/47

    115       120,639  
   

 

 

 
New York — 11.8%            

Battery Park City Authority, RB, 4.00%, 11/01/44

    1,500       1,460,847  

Build NYC Resource Corp., RB, Series A, 5.00%, 07/01/32

    245       228,176  
 

 

 

40  

2 0 2 2   B L A C K R O C K   S E M I - A N N U A L   R E P O R T   T O   S H A R E H O L D E R S


Schedule of Investments (unaudited) (continued)

November 30, 2022

  

BlackRock Impact Municipal Fund

(Percentages shown are based on Net Assets)

 

Security  

Par

(000)

    Value  
New York (continued)            

Metropolitan Transportation Authority, Refunding RB, Series A-1, 5.00%, 11/15/49

  $ 1,000     $ 960,290  

New York City Municipal Water Finance Authority, RB, Series CC-1, 4.00%, 06/15/52

      1,000       942,053  

New York Power Authority, RB

   

(AGM), 4.00%, 11/15/39

    1,000       1,001,327  

(AGM), 4.00%, 11/15/40

    1,000       994,159  
   

 

 

 
      5,586,852  
North Carolina — 0.5%            

North Carolina Housing Finance Agency, RB, S/F Housing, (GNMA,FNMA,FHLMC), 3.75%, 07/01/52

    250       247,182  
   

 

 

 
North Dakota — 0.5%            

North Carolina Housing Finance Agency, RB, S/F Housing, Series A, 4.00%, 01/01/53

    230       229,541  
   

 

 

 
Ohio — 3.5%            

Ohio State University, RB, Series B-1, VRDN, 1.70%, 12/01/39(a)

    1,500       1,500,000  

Southern Ohio Port Authority, RB, Series A, AMT, 7.00%, 12/01/42(b)

    200       169,678  
   

 

 

 
      1,669,678  
Oregon — 1.4%            

Oregon State Facilities Authority, RB, Series A, 5.00%, 06/01/52

    125       127,404  

State of Oregon Housing & Community Services Department, RB, S/F Housing, Series A, AMT, 4.00%, 07/01/51

    535       533,681  
   

 

 

 
      661,085  
Pennsylvania — 5.7%            

City of Philadelphia Pennsylvania Water & Wastewater Revenue, RB, Series C, 5.50%, 06/01/47

    1,000       1,109,916  

Pennsylvania Housing Finance Agency, Refunding RB, S/F Housing, Series 2022, 4.25%, 10/01/52

    475       481,036  

Southeastern Pennsylvania Transportation Authority, RB, 5.25%, 06/01/47

    1,000       1,093,233  
   

 

 

 
          2,684,185  
South Carolina — 1.4%            

South Carolina State Housing Finance & Development Authority, RB, S/F Housing, Series A, AMT, 4.00%, 01/01/52

    680       679,308  
   

 

 

 
Tennessee — 0.4%            

Tennessee Housing Development Agency, Refunding RB, S/F Housing, Series 1, 3.75%, 07/01/52

    200       197,273  
   

 

 

 
Texas — 6.6%            

Arlington Higher Education Finance Corp., RB (PSF), 5.00%, 08/15/47

    500       520,594  
Security  

Par

(000)

    Value  

 

 
Texas (continued)            

Arlington Higher Education Finance Corp., RB (continued)
Series A, 5.25%, 08/15/32

  $ 250     $ 247,801  

City of El Paso Texas Water & Sewer Revenue, Refunding RB, 5.00%, 03/01/46

    1,000       1,072,626  

New Hope Cultural Education Facilities Finance Corp., Refunding RB, Class A, 6.63%, 10/01/43

    100       96,224  

Tarrant County Cultural Education Facilities Finance Corp., RB, Class F, 5.00%, 11/15/52(a)

    415       457,734  

Texas State Technical College, RB, 5.50%, 08/01/42

    665       742,911  
   

 

 

 
      3,137,890  
Utah — 3.7%            

University of Utah, RB, Series A, 4.00%, 08/01/43

    1,500       1,504,849  

Utah Infrastructure Agency, RB, 5.00%, 10/15/32

    250       258,364  
   

 

 

 
      1,763,213  
Virginia — 2.2%            

Henrico County Economic Development Authority, Refunding RB, Class A, 5.00%, 10/01/47

    1,000       1,026,378  
   

 

 

 

Total Long-Term Investments — 94.8%
(Cost: $47,315,481)

        44,768,356  
   

 

 

 
     Shares         

Short-Term Securities

   
Money Market Funds — 3.1%            

BlackRock Liquidity Funds, MuniCash, Institutional Class, 1.59%(d)(e)

    1,459,328       1,459,474  
   

 

 

 

Total Short-Term Securities — 3.1%
(Cost: $1,459,182)

      1,459,474  
   

 

 

 

Total Investments — 97.9%
(Cost: $48,774,663)

      46,227,830  

Other Assets Less Liabilities — 2.1%

      1,014,037  
   

 

 

 

Net Assets — 100.0%

    $ 47,241,867  
   

 

 

 

 

(a) 

Variable rate security. Interest rate resets periodically. The rate shown is the effective interest rate as of period end. Security description also includes the reference rate and spread if published and available.

(b) 

Security exempt from registration pursuant to Rule 144A under the Securities Act of 1933, as amended. These securities may be resold in transactions exempt from registration to qualified institutional investors.

(c) 

Security is valued using significant unobservable inputs and is classified as Level 3 in the fair value hierarchy.

(d) 

Affiliate of the Fund.

(e) 

Annualized 7-day yield as of period end.

 

 

For Fund compliance purposes, the Fund’s sector classifications refer to one or more of the sector sub-classifications used by one or more widely recognized market indexes or rating group indexes, and/or as defined by the investment adviser. These definitions may not apply for purposes of this report, which may combine such sector sub-classifications for reporting ease.

 

 

S C H E D U L E   O F   I N V E S T M E N T S

  41


Schedule of Investments (unaudited) (continued)

November 30, 2022

  

BlackRock Impact Municipal Fund

 

Affiliates

Investments in issuers considered to be affiliate(s) of the Fund during the six months ended November 30, 2022 for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:

 

                   
Affiliated Issuer  

Value at

05/31/22

   

Purchases

at Cost

   

Proceeds

from Sales

   

Net

Realized

Gain (Loss)

   

Change in

Unrealized

Appreciation

(Depreciation)

   

Value at

11/30/22

   

Shares

Held at

11/30/22

    Income    

Capital Gain

Distributions

from

Underlying

Funds

 

BlackRock Liquidity Funds, MuniCash, Institutional Class

  $ 1,983,841     $     $ (524,383 )(a)    $ (74   $ 90     $ 1,459,474       1,459,328     $ 13,256     $  
       

 

 

   

 

 

   

 

 

     

 

 

   

 

 

 

 

  (a) 

Represents net amount purchased (sold).

 

Derivative Financial Instruments Outstanding as of Period End

Futures Contracts

 

         
Description  

Number of

Contracts

    

Expiration

Date

    

Notional

Amount (000)

    

Value/

Unrealized

Appreciation

(Depreciation)

 

Short Contracts
10-Year U.S. Treasury Note

    24        03/22/23      $ 2,731       $ (21,343

U.S. Long Bond

    37        03/22/23        4,722        (45,896

5-Year U.S. Treasury Note

    12        03/31/23        1,305        (10,306
          

 

 

 
            $ (77,545
          

 

 

 

Derivative Financial Instruments Categorized by Risk Exposure

As of period end, the fair values of derivative financial instruments located in the Statements of Assets and Liabilities were as follows:

 

               
    

Commodity

Contracts

    

Credit

Contracts

    

Equity

Contracts

    

Foreign

Currency

Exchange

Contracts

    

Interest

Rate

Contracts

    

Other

Contracts

     Total  

Liabilities — Derivative Financial Instruments

                   

Futures contracts

                   

Unrealized depreciation on futures contracts

  $      $      $      $      $   77,545      $      $   77,545  
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

For the period ended November 30, 2022, the effect of derivative financial instruments in the Statements of Operations was as follows:

 

               
    

Commodity

Contracts

    

Credit

Contracts

    

Equity

Contracts

    

Foreign

Currency

Exchange

Contracts

    

Interest

Rate

Contracts

   

Other

Contracts

     Total  

Net Realized Gain (Loss) from:

                  

Futures contracts

  $      $      $      $      $ 663,919     $      $ 663,919  
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

   

 

 

    

 

 

 

Net Change in Unrealized Appreciation (Depreciation) on:

                  

Futures contracts

  $      $      $      $      $   (139,993   $      $ (139,993
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

   

 

 

    

 

 

 

Average Quarterly Balances of Outstanding Derivative Financial Instruments

 

   

Futures contracts:

 

Average notional value of contracts — short

  $ 8,843,688  

For more information about the Fund’s investment risks regarding derivative financial instruments, refer to the Notes to Financial Statements.

 

 

42  

2 0 2 2   B L A C K R O C K   S E M I - A N N U A L   R E P O R T   T O   S H A R E H O L D E R S


Schedule of Investments (unaudited) (continued)

November 30, 2022

  

BlackRock Impact Municipal Fund

 

Fair Value Hierarchy as of Period End

Various inputs are used in determining the fair value of financial instruments. For a description of the input levels and information about the Fund’s policy regarding valuation of financial instruments, refer to the Notes to Financial Statements.

The following table summarizes the Fund’s financial instruments categorized in the fair value hierarchy. The breakdown of the Fund’s financial instruments into major categories is disclosed in the Schedule of Investments above.

 

                                                                               
         
      Level 1      Level 2        Level 3        Total  

Assets

               

Investments

               

Long-Term Investments

               

Municipal Bonds

   $      $ 44,699,587        $ 68,769        $ 44,768,356  

Short-Term Securities

               

Money Market Funds

     1,459,474                          1,459,474  
  

 

 

    

 

 

      

 

 

      

 

 

 
   $     1,459,474      $   44,699,587        $     68,769        $ 46,227,830  
  

 

 

    

 

 

      

 

 

      

 

 

 

Derivative Financial Instruments(a)

               

Liabilities

               

Interest Rate Contracts

   $ (77,545    $        $        $ (77,545
  

 

 

    

 

 

      

 

 

      

 

 

 

 

  (a) 

Derivative financial instruments are futures contracts. Futures contracts are valued at the unrealized appreciation (depreciation) on the instrument.

 

See notes to financial statements.

 

 

S C H E D U L E   O F   I N V E S T M E N T S

  43


Schedule of Investments (unaudited) 

November 30, 2022

  

BlackRock Strategic Municipal Opportunities Fund

(Percentages shown are based on Net Assets)

 

Security   Par
(000)
    Value  

Corporate Bonds

   
Education — 0.7%            

Capital Trust Agency, Inc., RB
8.25%, 01/01/44

  $ 940     $ 1,438  

8.25%, 01/01/49

      3,010       60,200  

Chapman University, 3.00%, 04/01/51

    3,495       2,352,364  

Conservation Fund A Nonprofit Corp., Series 2019, 3.47%, 12/15/29

    2,677       2,328,550  

Grand Canyon University, 5.13%, 10/01/28

    37,874       35,139,497  
   

 

 

 
      39,882,049  
Health Care Providers & Services — 0.5%            

Baylor Scott & White Holdings, Series 2021, 2.84%, 11/15/50

    1,046       689,864  

Hackensack Meridian Health, Inc., Series 2020, 2.68%, 09/01/41

    22,500       15,419,605  

OhioHealth Corp., 2.83%, 11/15/41

    16,570       12,061,123  

Providence St Joseph Health Obligated Group, Series A, 3.93%, 10/01/48

    1,738       1,369,017  
   

 

 

 
      29,539,609  
Thrifts & Mortgage Finance — 0.2%            

Community Preservation Corp., Series 2020, Class C, 2.87%, 02/01/30

    17,450           14,811,707  
   

 

 

 
Total Corporate Bonds — 1.4%
    (Cost: $106,070,263)
        84,233,365  
   

 

 

 

Municipal Bonds

   
Alabama — 0.6%            

Alabama Federal Aid Highway Finance Authority,

   

Refunding RB

   

Series B, 2.16%, 09/01/32

    4,000       3,139,080  

Series B, 2.26%, 09/01/33

    6,300       4,905,980  

County of Jefferson Alabama Sewer Revenue,
Refunding RB

   

Series D, Sub Lien, 7.00%, 10/01/51

    3,000       3,221,322  

Series D, Class D, Sub Lien, 6.50%, 10/01/53

    15,110       16,158,800  

Tuscaloosa County Industrial Development Authority, Refunding RB, Series A, 5.25%, 05/01/44(a)

    6,540       5,441,660  
   

 

 

 
      32,866,842  
Alaska — 0.4%            

State of Alaska International Airports System,

   

Refunding RB

   

Series B, 5.00%, 10/01/32

    5,000       5,270,560  

Series B, 5.00%, 10/01/34

    5,000       5,245,605  

Series C, AMT, 5.00%, 10/01/27

    6,060       6,416,861  

Series C, AMT, 5.00%, 10/01/30

    5,570       5,997,776  
   

 

 

 
      22,930,802  
Arizona — 3.3%            

Arizona Health Facilities Authority, RB, Series B, 3.32%, 01/01/37(b)

    50,000       46,221,100  

Arizona Health Facilities Authority, Refunding RB, 5.00%, 12/01/39

    5,000       5,064,715  

Arizona Industrial Development Authority, RB(a) 7.10%, 01/01/55

    3,195       3,263,098  

Series A, 5.00%, 07/01/39

    1,335       1,308,812  

Series A, 5.00%, 07/01/49

    2,075       1,939,619  

Arizona Industrial Development Authority, RB, M/F Housing, Series 2019-2, Class A, 3.63%, 05/20/33

    56,745       54,324,844  
Security  

Par

(000)

    Value  
Arizona (continued)            

City of Phoenix Civic Improvement Corp., ARB, Junior Lien, 5.00%, 07/01/44

  $   10,000     $ 10,351,820  

City of Phoenix Civic Improvement Corp., Refunding RB, Series D, Junior Lien, 5.00%, 07/01/37

    10,000       10,467,870  

Industrial Development Authority of the City of Phoenix, Refunding RB, 5.00%, 07/01/35(a)

    1,795       1,777,664  

Maricopa County Industrial Development Authority, RB

   

Series A, 5.00%, 09/01/31

    1,000       1,098,480  

Series A, 5.00%, 09/01/32

    1,000       1,091,125  

Series A, 5.00%, 09/01/34

    1,000       1,073,652  

Maricopa County Industrial Development Authority, Refunding RB, 5.00%, 07/01/36(a)

    250       243,664  

Maricopa County Pollution Control Corp., Refunding RB, 2.40%, 06/01/35

    50,000       38,494,900  

Salt River Project Agricultural Improvement & Power District, RB, 5.00%, 01/01/47

    5,000       5,375,630  

Salt River Project Agricultural Improvement & Power District, Refunding RB, Series A, 5.00%, 01/01/31

    10,000       11,639,690  
   

 

 

 
          193,736,683  
Arkansas(a) — 0.5%            

Arkansas Development Finance Authority, RB

   

Series A, AMT, 4.50%, 09/01/49

    13,150       11,288,552  

Series A, AMT, 4.75%, 09/01/49

    16,695       14,901,539  
   

 

 

 
      26,190,091  
California — 12.3%            

Antelope Valley Community College District, Refunding, GO, Series A, Class A, Election 2016, 4.00%, 08/01/46

    10,000       9,522,100  

Bay Area Toll Authority, Refunding RB, Series A, 2.00%, 04/01/56(b)

    15,000       13,911,960  

California Community Housing Agency, RB, M/F Housing, Series A-2, 4.00%, 08/01/51(a)

    1,915       1,361,531  

California Health Facilities Financing Authority, RB

   

5.00%, 02/01/36

    5,000       5,205,570  

5.00%, 02/01/37

    5,000       5,183,105  

California Health Facilities Financing Authority, Refunding RB, 4.00%, 05/15/51

    5,000       4,678,530  

California Housing Finance Agency, RB, M/F Housing
Class A, 3.25%, 08/20/36

    11,548       9,984,852  

Series 2021-1, Class A, 3.50%, 11/20/35

    43,622       39,247,166  

Series 2021-2, Class A, (FHLMC), 3.75%, 03/25/35

    49,295       49,024,890  

Series A, AMT, 4.25%, 01/15/35

    19       18,359  

California Municipal Finance Authority, RB
5.38%, 07/01/34(a)

    1,000       1,000,031  

5.63%, 07/01/44(a)

    2,760       2,706,757  

6.00%, 07/01/44

    1,960       1,966,248  

Series A, 6.00%, 08/01/44(a)

    330       331,166  

Series A, 6.13%, 08/01/49(a)

    285       286,104  

California Municipal Finance Authority, RB, S/F Housing, Series B, 5.88%, 08/15/49

    1,000       1,002,841  

California Pollution Control Financing Authority, RB(a)
AMT, 5.00%, 07/01/37

    10,000       9,761,360  

Series A, AMT, 5.00%, 11/21/45

    50,000       47,315,850  

California Pollution Control Financing Authority, Refunding RB, Series A-2, AMT, 3.63%, 07/01/27

    13,000       12,669,514  

California School Finance Authority, RB, Series A, 6.75%, 11/01/45(a)

    1,395       1,417,266  
 

 

 

44  

2 0 2 2   B L A C K R O C K   S E M I - A N N U A L   R E P O R T   T O   S H A R E H O L D E R S


Schedule of Investments (unaudited) (continued)

November 30, 2022

  

BlackRock Strategic Municipal Opportunities Fund

(Percentages shown are based on Net Assets)

 

Security  

Par

(000)

    Value  
California (continued)            

California Statewide Communities Development Authority, Refunding RB

   

1.75%, 09/01/29

  $    24,000     $ 20,102,616  

Series A, Class A, 5.25%, 11/01/44(a)

    1,250       1,044,623  

Series B, Class B, 1.45%, 04/01/28

    10,000       8,817,230  

City of Los Angeles Department of Airports, ARB

   

Series A, AMT, 5.00%, 05/15/45

    10,000         10,139,080  

Series A, AMT, Subordinate, 5.00%, 05/15/30

    5,000       5,449,775  

City of Los Angeles Department of Airports, Refunding ARB

   

Series B, 5.00%, 05/15/34

    4,125       4,657,009  

Series B, 5.00%, 05/15/36

    3,165       3,520,129  

AMT, 5.00%, 05/15/26

    5,000       5,292,605  

Series A, AMT, 5.00%, 05/15/40

    5,000       5,342,030  

Series A, AMT, 5.00%, 05/15/46

    10,000       10,485,190  

Series D, AMT, Subordinate, 5.00%, 05/15/30

    10,000       10,942,160  

Series D, AMT, Subordinate, 5.00%, 05/15/31

    14,600       16,016,185  

Series D, AMT, Subordinate, 5.00%, 05/15/32

    13,000       14,254,266  

Series D, AMT, Subordinate, 5.00%, 05/15/33

    20,000       21,760,040  

Series D, AMT, Subordinate, 5.00%, 05/15/34

    20,000       21,648,880  

Series D, AMT, Subordinate, 5.00%, 05/15/35

    10,000       10,784,750  

Series D, AMT, Subordinate, 5.00%, 05/15/36

    10,000       10,726,180  

Series D, AMT, Subordinate, 5.00%, 05/15/37

    10,000       10,714,770  

Cloverdale Unified School District, Refunding, GO, Series B, Class B, 4.00%, 08/01/49

    5,000       4,829,625  

CMFA Special Finance Agency VII, RB, Series A1, 3.00%, 08/01/56(a)

    865       562,999  

CMFA Special Finance Agency XII, RB, M/F Housing, 4.38%, 08/01/49(a)

    7,490       5,741,879  

CMFA Special Finance Agency, RB, M/F Housing, Series A-2, 4.00%, 08/01/45(a)

    885       692,116  

CSCDA Community Improvement Authority, RB, M/F
Housing(a)

   

3.13%, 07/01/56

    15,360       10,191,852  

4.00%, 07/01/56

    19,980       15,053,213  

3.13%, 08/01/56

    8,120       5,407,498  

4.00%, 10/01/56

    3,340       2,643,309  

4.00%, 12/01/56

    2,985       2,083,766  

3.25%, 04/01/57

    1,105       764,593  

3.25%, 05/01/57

    7,700       5,363,581  

4.00%, 07/01/58

    5,880       4,097,213  

Series B, 4.00%, 07/01/58

    6,700       4,447,353  

Mezzanine Lien, 4.00%, 06/01/57

    5,890       4,232,595  

Series B, Mezzanine Lien, 4.00%, 12/01/59

    8,355       5,720,610  

Senior Lien, 3.25%, 05/01/57

    2,180       1,470,654  

Senior Lien, 3.13%, 06/01/57

    8,865       5,846,521  

Series B, Sub Lien, 4.00%, 12/01/59

    10,420       6,971,313  

Folsom Cordova Unified School District School Facilities Improvement Dist No 5, GO, Series A, Class A, Election 2014, 4.00%, 10/01/40

    10,000       10,006,570  

Fresno Unified School District, GO, Series B, 4.00%, 08/01/46

    10,000       9,841,770  

Glendale Community College District, GO, CAB, Series B, 0.00%, 08/01/39(c)

    6,755       3,231,680  

Golden State Tobacco Securitization Corp., Refunding RB, Class B, (SAP), 2.35%, 06/01/30

    8,000       6,576,840  

Golden State Tobacco Securitization Corp., Refunding RB, CAB, Series B-2, Class B-2, Subordinate, 0.00%, 06/01/66(c)

    19,450       2,079,672  
Security   Par
(000)
    Value  
California (continued)            

Los Angeles Community College District, GO, Series C-1, Election 2016, 5.00%, 08/01/26

  $   5,000     $ 5,420,780  

Municipal Improvement Corp. of Los Angeles, Refunding RB

   

5.00%, 11/01/39

    5,000         5,540,530  

5.00%, 11/01/40

    5,000       5,518,895  

Northern California Gas Authority No. 1, RB, Series B, 3.23%, 07/01/27(b)

    3,600       3,585,971  

Palo Alto Unified School District, GO, 3.00%, 08/01/33

    5,000       4,815,150  

Poway Unified School District, Refunding GO, CAB(c)

   

0.00%, 08/01/35

    5,950       3,606,468  

0.00%, 08/01/38

    22,210       11,398,283  

San Diego County Regional Airport Authority, ARB, Series B, AMT, 5.00%, 07/01/31

    5,750       6,252,061  

San Francisco City & County Airport Comm-San Francisco International Airport, Refunding RB, Series A, AMT, 5.00%, 05/01/32

    5,000       5,408,510  

San Francisco City & County Public Utilities Commission Wastewater Revenue, Refunding RB

   

Series A, 5.00%, 10/01/43

    10,000       11,052,970  

Series A, 5.00%, 10/01/44

    10,000       11,007,690  

Series A, 5.00%, 10/01/45

    5,000       5,485,120  

Series A, 4.00%, 10/01/47

    10,000       9,699,670  

Series A, 4.00%, 10/01/48

    25,000       23,808,175  

Series A, 4.00%, 10/01/49

    25,000       23,782,575  

Series A, 4.00%, 10/01/50

    5,000       4,773,930  

San Francisco City & County Redevelopment Agency Successor Agency, TA, CAB(a)(c)

   

Series D, 0.00%, 08/01/26

    1,170       989,033  

Series D, 0.00%, 08/01/43

    20,000       7,230,800  

San Mateo County Community College District, GO(c)

   

Series B, Election 2005, (NPFGC), 0.00%, 09/01/35

    11,000       6,867,905  

Series B, Election 2005, (NPFGC), 0.00%, 09/01/36

    21,650       12,830,591  

State of California Department of Water Resources, Refunding RB, Series BC, 1.41%, 12/01/29

    4,600       3,693,496  

State of California, Refunding GO, (AGM), 5.25%, 08/01/32

    10,000       12,076,860  

Tobacco Securitization Authority of Northern

   

California, Refunding RB

   

Series A, 5.00%, 06/01/27

    1,550       1,636,468  

Series A, 5.00%, 06/01/28

    1,000       1,062,642  

Series A, 5.00%, 06/01/29

    1,050       1,125,137  

Series A, 5.00%, 06/01/32

    1,300       1,407,851  

Series A, 4.00%, 06/01/34

    1,335       1,315,764  
   

 

 

 
      717,543,265  
Colorado — 1.3%            

City & County of Denver CO Airport System Revenue, Refunding ARB

   

Series A, AMT, 5.00%, 11/15/30

    10,000       10,816,820  

Series A, AMT, 5.00%, 12/01/36

    5,000       5,366,410  

Colorado Educational & Cultural Facilities Authority, RB

   

5.00%, 12/01/22

    30       30,000  

5.00%, 07/01/46(a)

    2,000       1,835,790  

Colorado Health Facilities Authority, Refunding RB

   

Series A, 5.00%, 08/01/30

    10,000       10,654,220  

Series A, 5.00%, 08/01/31

    5,000       5,290,415  
 

 

 

S C H E D U L E   O F   I N V E S T M E N T S

  45


Schedule of Investments (unaudited) (continued)

November 30, 2022

  

BlackRock Strategic Municipal Opportunities Fund

(Percentages shown are based on Net Assets)

 

Security  

Par

(000)

     Value  
Colorado (continued)             

Colorado Health Facilities Authority, Refunding RB (continued)

    

Series A, 5.00%, 08/01/32

  $ 5,000      $ 5,265,760  

Series A, 5.00%, 08/01/35

    5,000        5,212,335  

Series A, 5.00%, 08/01/36

      10,000          10,365,780  

DIATC Metropolitan District, GO (a)
5.00%, 12/01/39

    1,245        1,163,369  

5.00%, 12/01/49

    2,000        1,737,740  

Fitzsimons Village Metropolitan District No. 1, Refunding GO, Senior Lien, 5.00%, 12/01/49

    1,040        874,668  

Flying Horse Metropolitan District No. 3, Refunding GO, 6.00%, 12/01/49(a)

    2,965        2,737,157  

Garfield Pitkin & Eagle Counties School District No Re-1 Roaring Fork, GO, Class 1, 4.00%, 12/15/35(d)

    5,000        5,200,350  

Plaza Metropolitan District No.1, Refunding TA, 4.00%, 12/01/23(a)

    1,000        991,065  

Public Authority for Colorado Energy, RB, 6.25%, 11/15/28

    5,000        5,308,240  

STC Metropolitan District No.2, Refunding GO, Series A, 4.00%, 12/01/29

    1,000        954,507  

Village at Dry Creek Metropolitan District No. 2, GO, 4.38%, 12/01/44

    2,483        2,043,648  
    

 

 

 
       75,848,274  
Connecticut — 1.5%             

Colorado Housing and Finance Authority, Refunding RB, S/F Housing, Series A, Class A, RB, 3.85%, 05/15/45

    10,000        8,805,140  

Connecticut Housing Finance Authority, Refunding RB, M/F Housing, Series A-1, 2.88%, 11/15/30

    5,030        4,805,979  

Connecticut Housing Finance Authority, Refunding RB, S/F Housing

    

0.55%, 05/15/26

    1,000        919,067  

0.60%, 11/15/26

    1,000        906,456  

0.70%, 05/15/27

    2,500        2,240,533  

0.75%, 11/15/27

    2,250        1,989,074  

0.85%, 05/15/28

    2,940        2,571,362  

0.90%, 11/15/28

    1,150        992,344  

1.05%, 05/15/29

    3,000        2,569,227  

1.10%, 11/15/29

    5,630        4,753,718  

1.30%, 05/15/30

    3,450        2,911,352  

1.35%, 11/15/30

    4,050        3,379,850  

1.45%, 05/15/31

    1,220        1,032,110  

1.50%, 11/15/31

    4,910        4,116,190  

1.60%, 05/15/32

    3,740        3,120,900  

1.70%, 05/15/34

    2,635        2,092,393  

Connecticut State Health & Educational Facilities Authority, RB, Series A-1, 5.00%, 10/01/54(a)

    2,370        1,934,764  

Mohegan Tribal Finance Authority, RB, 7.00%, 02/01/45(a)

    10,540        10,582,824  

Mohegan Tribe of Indians of Connecticut, RB, Series A, AMT, 6.75%, 02/01/45(a)

    5,475        5,508,349  

Mohegan Tribe of Indians of Connecticut, Refunding RB(a)

    

Series C, 5.75%, 02/01/24

    3,320        3,353,469  

Series C, 5.75%, 02/01/25

    3,755        3,822,015  
Security  

Par

(000)

     Value  
Connecticut (continued)             

Mohegan Tribe of Indians of Connecticut, Refunding RB(a) (continued)
Series C, 6.25%, 02/01/30

  $ 4,930      $ 5,119,894  

State of Connecticut, Special Tax Revenue, RB, Series D, 4.00%, 11/01/39

      10,000        9,973,960  
    

 

 

 
         87,500,970  
Delaware — 0.4%             

Affordable Housing Opportunities Trust, RB, Series AH-01, Class B, 6.88%, 05/01/39(a)(e)

    15,037        12,937,242  

State of Delaware, Refunding GO, 5.00%, 03/01/34

    5,000        5,851,555  

State of Delaware, Refunding, GO, 5.00%, 03/01/32

    5,070        6,010,211  
    

 

 

 
       24,799,008  
District of Columbia — 0.7%             

District of Columbia, Refunding GO, Series D, Class D, 4.00%, 02/01/39

    5,000        5,083,390  

District of Columbia, Refunding RB, Series C, 5.00%, 12/01/26

    5,250        5,728,522  

Metropolitan Washington Airports Authority Aviation Revenue, Refunding ARB

    

AMT, 5.00%, 10/01/27

    5,000        5,321,160  

Series A, AMT, 5.00%, 10/01/30

    5,000        5,147,245  

Series A, AMT, 4.00%, 10/01/51

    10,000        8,745,640  

Washington Metropolitan Area Transit Authority, RB, Series A, 4.00%, 07/15/43

    10,000        9,777,910  
    

 

 

 
       39,803,867  
Florida — 4.0%             

Alta Lakes Community Development District, SAB
3.50%, 05/01/24

    195        193,180  

3.75%, 05/01/29

    550        524,728  

4.40%, 05/01/39

    1,030        932,104  

4.63%, 05/01/49

    1,775        1,545,865  

Babcock Ranch Community Independent Special District, SAB

    

4.75%, 11/01/26

    335        333,829  

5.00%, 11/01/31

    500        490,059  

5.25%, 11/01/46

    3,465        3,307,699  

Brevard County Health Facilities Authority, Refunding RB(a)

    

4.00%, 11/15/31

    580        543,208  

4.00%, 11/15/45

    1,575        1,290,101  

4.00%, 11/15/55

    2,340        1,763,237  

Broward County Florida Tourist Development Tax Revenue, Refunding RB, 4.00%, 09/01/47

    10,000        8,913,530  

Canaveral Port Authority, ARB

    

Series B, Class B, 5.00%, 06/01/48

    5,000        5,103,920  

Series A, Class A, AMT, 5.00%, 06/01/45

    5,000        5,064,800  

Capital Trust Agency, Inc., RB
8.00%, 01/01/34

    550        11,000  

4.88%, 06/15/56(a)

    12,000        9,596,928  

Series A, 5.00%, 06/15/49(a)

    5,000        4,006,815  

Series A, Class A, 5.00%, 12/15/39

    1,775        1,788,502  

Series A-2, Class A-2, 5.00%, 01/01/26(a)

    2,060        2,049,799  

Celebration Pointe Community Development District No.1, SAB

    

4.75%, 05/01/24

    100        100,182  

5.00%, 05/01/34

    710        700,238  

5.13%, 05/01/45

    985        941,032  
 

 

 

46  

2 0 2 2   B L A C K R O C K   S E M I - A N N U A L   R E P O R T   T O   S H A R E H O L D E R S


Schedule of Investments (unaudited) (continued)

November 30, 2022

  

BlackRock Strategic Municipal Opportunities Fund

(Percentages shown are based on Net Assets)

 

Security  

Par

(000)

    Value  
Florida (continued)            

Celebration Pointe Community Development District No.1, SAB (continued)
4.00%, 05/01/53

  $ 2,695     $ 1,971,220  

Charles Cove Community Development District, SAB, 4.00%, 05/01/52

    1,160       893,010  

Charlotte County Industrial Development Authority, RB, AMT, 5.50%, 10/01/36(a)

    3,220       3,228,269  

City of St Petersburg FL Public Utility Revenue, RB, Series B, 5.00%, 10/01/52

    5,000       5,386,890  

Collier County Industrial Development Authority, Refunding RB, Series A, Class A, 8.25%, 05/15/49(a)(e)(f)(g)

    1,000       683,128  

County of Miami-Dade Florida Aviation Revenue, Refunding RB, Series C, 4.06%, 10/01/31

    5,120       4,736,251  

County of Miami-Dade Florida, RB(c)
0.00%, 10/01/38

      30,000         14,582,430  

0.00%, 10/01/44

    10,000       3,391,580  

Series C, AGC, (AGC), 0.00%, 10/01/44

    48,000       17,664,768  

County of Miami-Dade Florida, Refunding RB, Series A, AGC, (AGC), 0.00%, 10/01/45(c)

    10,000       3,454,250  

County of Miami-Dade Seaport Department, Refunding RB, Series B-2, AMT, Subordinate, 4.00%, 10/01/50

    11,005       9,702,767  

County of Palm Beach Florida, RB(a)
5.25%, 04/01/23

    85       84,837  

5.00%, 04/01/39

    2,700       2,603,283  

5.00%, 04/01/51

    2,305       2,108,983  

Crossings At Fleming Island Community Development District, Refunding SAB, Series A-3, Class A3, Senior Lien, 6.50%, 05/01/44

    2,185       2,229,045  

Duval County Public Schools, COP(h)

   

Series A, AMT, (AGM), 5.00%, 07/01/30

    5,750       6,480,963  

Series A, AMT, (AGM), 5.00%, 07/01/31

    6,500       7,278,473  

Epperson North Community Development District, SAB, Series A, 4.00%, 11/01/51

    995       762,328  

Florida Development Finance Corp., RB

   

Series A, 5.75%, 06/15/29(a)

    365       363,470  

Series A, 6.00%, 06/15/34(a)

    440       439,030  

Series A, 6.13%, 06/15/44(a)

    1,685       1,620,247  

Series C, 5.75%, 12/15/56(a)

    4,090       3,470,022  

AMT, 3.00%, 06/01/32

    4,240       3,464,190  

Florida Development Finance Corp., Refunding RB
5.00%, 11/15/28

    1,050       1,137,874  

5.00%, 11/15/29

    1,350       1,474,393  

5.00%, 11/15/30

    1,500       1,648,260  

5.00%, 11/15/31

    1,600       1,763,938  

5.00%, 11/15/32

    1,800       1,978,524  

6.50%, 06/30/57(a)

    5,810       5,702,393  

Series A, Class A, 4.50%, 12/15/56(a)

    11,970       9,149,437  

Florida Housing Finance Corp., RB, S/F Housing Class 1, (GNMA/FNMA/FHLMC),
  3.70%, 07/01/38

    2,275       2,290,754  

Series 1, Class 1, (GNMA/FNMA/FHLMC), 1.80%, 07/01/36

    2,495       2,011,397  

Series 1, Class 1, (GNMA/FNMA/FHLMC), 2.10%, 07/01/46

    9,975       6,823,808  

Series 1, Class 1, (GNMA/FNMA/FHLMC), 2.15%, 07/01/51

    6,485       4,167,164  
Security  

Par

(000)

    Value  
Florida (continued)            

Harbor Bay Community Development District, Refunding SAB, Series A-2, Class A-2, 3.75%, 05/01/34

  $ 1,005     $ 883,846  

Harbor Bay Community Development District, SAB

   

Series A-1, 3.88%, 05/01/39

      2,170       1,839,650  

Series A-1, 4.10%, 05/01/48

    1,400       1,126,560  

Lakewood Ranch Stewardship District, SAB
4.25%, 05/01/25

    195       193,807  

2.13%, 05/01/26

    185       176,472  

4.25%, 05/01/26

    770       761,755  

2.63%, 05/01/31

    260       225,690  

4.88%, 05/01/35

    1,100       1,059,849  

4.40%, 05/01/39

    605       547,498  

3.13%, 05/01/41

    645       478,698  

4.88%, 05/01/45

    2,275       2,073,933  

5.13%, 05/01/46

    5,415         5,089,223  

4.50%, 05/01/49

    1,505       1,284,842  

4.00%, 05/01/51

    925       716,111  

Miami-Dade County Seaport Department, Refunding RB, Series A-2, (AGM), 4.00%, 10/01/49

    5,000       4,618,545  

Midtown Miami Community Development District, Refunding SAB, Series B, 5.00%, 05/01/37

    1,870       1,839,525  

Pinellas County Industrial Development Authority, RB, 5.00%, 07/01/39

    2,030       1,967,884  

Portico Community Development District, Refunding SAB

   

Series 1, 3.20%, 05/01/31

    995       884,396  

Series 1, 3.50%, 05/01/37

    1,250       1,033,646  

Reunion East Community Development District, SAB 2.40%, 05/01/26

    290       278,092  

2.85%, 05/01/31

    500       440,105  

4.00%, 05/01/51

    2,685       2,078,657  

Sawyers Landing Community Development District, SAB

   

3.75%, 05/01/31

    1,550       1,461,464  

4.13%, 05/01/41

    2,525       2,256,161  

State of Florida, Refunding GO, 5.00%, 07/01/28

    5,000       5,598,350  

Sterling Hill Community Development District, Refunding SAB, Series B, 5.50%, 11/01/10(f)(g)

    143       90,783  

Sumter Landing Community Development District, RB, 4.17%, 10/01/47

    2,030       1,724,286  

Talavera Community Development District, SAB
4.35%, 05/01/40

    495       441,703  

4.50%, 05/01/50

    770       653,801  

Tolomato Community Development District, Refunding SAB, Series 2015-2, 6.61%, 05/01/40(i)

    490       432,776  

Tolomato Community Development District, SAB, Series 2015-3, 6.61%, 05/01/40(f)(g)

    535       5  

Trout Creek Community Development District, SAB 5.50%, 05/01/35

    2,325       2,334,660  

5.63%, 05/01/45

    3,610       3,614,444  

Village Center Community Development District, Refunding RB, 5.02%, 11/01/36

    1,500       1,434,798  

Westside Haines City Community Development District, SAB

   

2.50%, 05/01/26

    250       241,216  

3.00%, 05/01/31

    435       391,744  

3.25%, 05/01/41

    2,025       1,580,191  
   

 

 

 
      235,803,298  
 

 

 

S C H E D U L E   O F   I N V E S T M E N T S

  47


Schedule of Investments (unaudited) (continued)

November 30, 2022

  

BlackRock Strategic Municipal Opportunities Fund

(Percentages shown are based on Net Assets)

 

Security   Par
(000)
    Value  
Georgia — 2.7%            

Atlanta Urban Redevelopment Agency, RB(a)
2.38%, 07/01/26

  $ 1,380     $ 1,307,615  

2.88%, 07/01/31

      1,930       1,683,508  

3.63%, 07/01/42

    5,605       4,673,057  

3.88%, 07/01/51

    2,630       2,129,861  

City of Atlanta Georgia Department of Aviation, Refunding RB

   

Series B, 5.00%, 07/01/28

    1,100       1,212,233  

Series B, 5.00%, 07/01/29

    1,095       1,222,101  

Series B, 5.00%, 07/01/32

    1,625       1,850,969  

Series B, 5.00%, 07/01/33

    1,800         2,036,394  

Series B, 5.00%, 07/01/34

    1,635       1,836,262  

Series C, AMT, 5.00%, 07/01/29

    1,160       1,243,942  

Series C, AMT, 5.00%, 07/01/30

    1,315       1,419,381  

Series C, AMT, 5.00%, 07/01/31

    1,730       1,874,796  

Series C, AMT, 5.00%, 07/01/34

    1,000       1,072,859  

Series C, AMT, 5.00%, 07/01/35

    1,500       1,604,681  

Series C, AMT, 5.00%, 07/01/36

    1,500       1,598,756  

City of Atlanta Georgia Water & Wastewater Revenue, Refunding RB, Refunding RB, 5.00%, 11/01/40

    10,000       10,385,710  

City of Columbus GA, GO, 5.00%, 01/01/30

    5,000       5,734,090  

East Point Business & Industrial Development Authority, RB, Series A, 5.25%, 06/15/62(a)

    3,355       2,964,377  

Georgia Housing & Finance Authority, RB, S/F Housing

   

Series B, 3.55%, 12/01/42

    10,000       8,754,980  

Series B1, 3.65%, 06/01/44

    9,670       9,221,438  

Georgia Housing & Finance Authority, Refunding RB, S/F Housing

   

Series A, Class A, 2.40%, 12/01/41

    4,245       3,111,402  

Series A, Class A, 2.65%, 12/01/46

    8,000       5,696,912  

Series A, Class A, 2.70%, 12/01/51

    9,535       6,909,919  

Series A-1, 3.80%, 12/01/40

    8,175       8,102,038  

Georgia State Road & Tollway Authority, RB

   

Series A, (GTD), 4.00%, 07/15/38

    5,470       5,632,371  

Series A, (GTD), 4.00%, 07/15/40

    10,000       10,237,330  

Series A, (GTD), 4.00%, 07/15/41

    10,000       10,201,260  

Series A, (GTD), 4.00%, 07/15/43

    10,000       10,145,560  

Gwinnett County School District, GO, Series B, 5.00%, 08/01/27

    10,000       11,028,470  

State of Georgia, GO

   

Series A, 5.00%, 08/01/30

    5,000       5,806,300  

Series A, Class A, 5.00%, 08/01/32

    5,000       5,785,805  

State of Georgia, Refunding GO, Series A, Class A, 4.00%, 07/01/34

    5,000       5,290,695  

State of Georgia, Refunding, GO, Series A, Class A, 4.00%, 07/01/35

    5,000       5,242,130  
   

 

 

 
      157,017,202  
Hawaii — 0.4%            

Kauai County Community Facilities District, ST 5.00%, 05/15/44

    625       627,569  

5.00%, 05/15/49

    2,750       2,699,747  

State of Hawaii Department of Budget & Finance, Refunding RB, Series A, Class A, 4.00%, 07/01/40

    14,000       13,305,404  

State of Hawaii, Refunding GO, Series GJ, 2.04%, 08/01/31

    7,500       6,001,260  
   

 

 

 
      22,633,980  
Security   Par
(000)
    Value  
Idaho — 0.3%            

Idaho Housing & Finance Association, RB(a) 4.25%, 06/15/62

  $ 5,910     $ 4,329,565  

Series A, 6.95%, 06/15/55

      5,150       5,453,773  

Idaho Housing & Finance Association, Refunding RB

   

Series A, Class A, 4.00%, 07/15/36

    1,500       1,512,702  

Series A, Class A, 4.00%, 07/15/37

    2,100       2,094,668  

Series A, Class A, 4.00%, 07/15/38

    3,000       2,950,365  

Series A, Class A, 4.00%, 07/15/39

    3,250       3,185,777  
   

 

 

 
        19,526,850  
Illinois — 3.1%            

Chicago Board of Education, GO
6.32%, 11/01/29

    7,990       7,750,108  

Series D, 5.00%, 12/01/46

    29,655       28,156,236  

Series H, 5.00%, 12/01/46

    5,000       4,694,845  

Chicago Board of Education, GO, BAB
6.04%, 12/01/29

    19,810       19,149,614  

6.52%, 12/01/40

    7,045       6,275,306  

Chicago Board of Education, Refunding GO

   

Series B, 4.00%, 12/01/35

    11,230       10,027,492  

Series C, 5.00%, 12/01/27

    4,585       4,643,564  

Series C, 5.00%, 12/01/34

    5,590       5,549,472  

Series C, Class C, 5.00%, 12/01/24

    3,280       3,329,853  

Series F, 5.00%, 12/01/23

    7,220       7,286,142  

City of Chicago Illinois Revenue, Refunding SAB(a)
1.57%, 12/01/22

    270       269,979  

1.99%, 12/01/23

    280       273,379  

2.27%, 12/01/24

    315       301,843  

2.53%, 12/01/25

    335       316,571  

2.69%, 12/01/26

    305       284,305  

2.87%, 12/01/27

    248       229,128  

3.04%, 12/01/28

    270       248,025  

3.20%, 12/01/29

    325       297,323  

3.29%, 12/01/30

    350       318,299  

3.38%, 12/01/31

    375       339,302  

3.45%, 12/01/32

    300       269,197  

Illinois Finance Authority, Refunding RB

   

Class A, 4.00%, 08/15/39

    7,000       6,497,288  

Series A, 5.00%, 08/15/33

    3,640       4,045,205  

Series A, Class A, 5.00%, 08/15/27

    2,165       2,346,522  

Series A, Class A, 5.00%, 08/15/28

    3,310       3,631,586  

Series A, Class A, 5.00%, 08/15/30

    2,560       2,864,538  

Series A, Class A, 5.00%, 08/15/31

    2,530       2,852,851  

Series A, Class A, 5.00%, 08/15/32

    2,960       3,323,695  

Series A, Class A, 5.00%, 08/15/34

    4,870       5,361,052  

Series A, Class A, 5.00%, 08/15/35

    5,000       5,455,515  

Series A, Class A, 4.00%, 11/15/39

    15,000       13,554,105  

Illinois Housing Development Authority, RB, S/F Housing

   

Series D, Class A, (FHLMC,FNMA,GNMA), 2.25%, 04/01/30

    975       894,285  

Series D, Class A, (FHLMC,FNMA,GNMA), 2.35%, 04/01/31

    900       803,887  

Series D, Class A, (FHLMC,FNMA,GNMA), 2.70%, 10/01/34

    5,000       4,388,495  

Sales Tax Securitization Corp., Refunding RB

   

Series A, 2nd Lien, 5.00%, 01/01/27

    8,865       9,406,164  

Series A, 2nd Lien, 5.00%, 01/01/33

    3,000       3,334,578  

State of Illinois, GO, Series A, AMT, 5.00%, 12/01/30

    10,000       10,597,050  
   

 

 

 
      179,366,799  
 

 

 

48  

2 0 2 2   B L A C K R O C K   S E M I - A N N U A L   R E P O R T   T O   S H A R E H O L D E R S


Schedule of Investments (unaudited) (continued)

November 30, 2022

  

BlackRock Strategic Municipal Opportunities Fund

(Percentages shown are based on Net Assets)

 

Security   Par
(000)
    Value  
Indiana — 0.2%            

City of Valparaiso Indiana, RB, AMT, 5.88%, 01/01/24

  $ 110     $ 110,897  

Indiana Finance Authority, RB, 1st Lien, 5.25%, 10/01/47

    5,000       5,409,455  

Indiana Finance Authority, Refunding RB

   

Series B, Class B, 3.83%, 09/15/41

      2,780       2,062,193  

Class 1, 1st Lien, 5.00%, 10/01/26

    5,015       5,424,129  
   

 

 

 
      13,006,674  
Iowa — 0.1%            

Iowa Tobacco Settlement Authority, Refunding RB, Series B2, Subordinate, 0.00%, 06/01/65(c)

    59,095       6,479,530  
   

 

 

 
Kentucky — 0.2%            

City of Henderson KY, RB, Series SE, Class A, AMT, 4.70%, 01/01/52(a)

    2,490       2,219,882  

Kentucky Economic Development Finance Authority, RB, Series B, 5.00%, 08/15/33

    5,000       5,226,625  

Westvaco Corp., RB, 7.67%, 01/15/27(a)

    3,100       3,282,212  
   

 

 

 
      10,728,719  
Louisiana — 0.3%            

Juban Crossing Economic Development District, Refunding RB, Series C, 7.00%, 09/15/44(a)

    5,600       4,701,385  

Louisiana Public Facilities Authority, RB, Series A, 5.00%, 04/01/57(a)

    4,965       4,117,593  

Louisiana Public Facilities Authority, Refunding RB, Class A, 3.00%, 05/15/47

    15,000       10,950,000  
   

 

 

 
        19,768,978  
Maine — 0.5%            

Finance Authority of Maine, RB, AMT, 8.00%, 12/01/51(a)

    12,755       8,763,119  

Maine Health & Higher Educational Facilities Authority, RB, Series A, 4.00%, 07/01/50

    5,000       4,242,695  

Maine State Housing Authority, RB, M/F Housing

   

Series A, AMT, 0.60%, 11/15/26

    2,000       1,813,752  

Series A, AMT, 1.85%, 11/15/36

    2,750       2,029,008  

Series A, AMT, 2.05%, 11/15/41

    1,185       788,306  

Series A, AMT, 2.15%, 11/15/46

    5,000       3,022,595  

Maine State Housing Authority, RB, S/F Housing

   

Series B, 3.75%, 11/15/38

    6,075       6,094,525  

Series H, 3.55%, 11/15/37

    1,035       981,095  

Series A, AMT, 3.00%, 11/15/44

    2,500       1,974,067  
   

 

 

 
      29,709,162  
Maryland — 1.3%            

Anne Arundel County Consolidated Special Taxing District, ST

   

5.13%, 07/01/36

    600       601,325  

5.25%, 07/01/44

    1,220       1,217,423  

Anne County Arundel, GO
5.00%, 10/01/30

    4,380       5,091,334  

5.00%, 10/01/31

    4,225       4,981,693  

5.00%, 10/01/33

    4,015       4,719,046  

County of Anne Arundel Maryland, Refunding GO 5.00%, 04/01/30

    3,550       4,093,754  

5.00%, 04/01/31

    4,685       5,486,036  

County of Howard Maryland, TA, 6.10%, 02/15/44

    1,170       1,180,057  

Maryland Community Development Administration, RB, M/F Housing

   

Series D, 2.75%, 07/01/34

    1,005       874,582  
Security   Par
(000)
    Value  
Maryland (continued)            

Maryland Community Development Administration, RB, M/F Housing (continued)

   

Series D, (FHA 542(C)), 2.95%, 07/01/62

  $ 2,000     $ 1,260,606  

Maryland Community Development Administration, Refunding RB, S/F Housing

   

Series A, 2.50%, 09/01/40

    5,000       3,722,020  

Series A, 2.60%, 03/01/42

    3,490       2,571,977  

Maryland Health & Higher Educational Facilities Authority, RB, Series A, 7.00%, 03/01/55(a)

    10,405       10,865,140  

State of Maryland Department of Transportation, ARB

   

Class B, AMT, 5.00%, 08/01/30

    1,000       1,084,007  

Class B, AMT, 5.00%, 08/01/31

    1,250       1,353,959  

Class B, AMT, 5.00%, 08/01/34

    1,105       1,173,743  

Class B, AMT, 5.00%, 08/01/35

    1,115       1,178,455  

Class B, AMT, 4.00%, 08/01/37

    1,500       1,425,443  

Class B, AMT, 4.00%, 08/01/38

    1,500       1,416,708  

Class B, AMT, 4.00%, 08/01/39

    1,840       1,729,661  

Class B, AMT, 4.00%, 08/01/40

      1,600       1,479,099  

Series A, AMT, 3.00%, 10/01/33

    5,000       4,777,200  

State of Maryland, GO

   

Series A, 5.00%, 08/01/27

    5,000       5,517,310  

Series A, 5.00%, 03/01/30

    5,000       5,762,045  
   

 

 

 
        73,562,623  
Massachusetts — 2.1%            

City of Cambridge, GO, 5.00%, 02/15/29

    5,400       6,122,947  

Commonwealth of Massachusetts, RB, Series A, 3.88%, 01/15/31

    8,670       8,162,415  

Commonwealth of Massachusetts, Refunding GO, Series A, 5.00%, 10/01/30

    8,975       10,418,997  

Massachusetts Bay Transportation Authority, Sales Tax Revenue, Refunding RB

   

Series A-1, 5.25%, 07/01/32

    5,000       5,999,635  

Series A, Refunding RB, 5.00%, 07/01/26

    6,000       6,484,236  

Massachusetts Clean Water Trust, Refunding RB, 5.00%, 08/01/26

    5,000       5,412,300  

Massachusetts Development Finance Agency, RB 5.00%, 10/01/38

    5,000       4,756,040  

5.00%, 10/01/43

    5,000       4,563,705  

Series D, 5.00%, 07/01/44

    5,000       5,002,700  

Series J2, 5.00%, 07/01/43

    5,000       5,127,490  

Massachusetts Development Finance Agency, Refunding RB

   

4.00%, 10/01/32(a)

    2,560       2,574,093  

4.13%, 10/01/42(a)

    8,225       8,121,826  

Series A, 5.00%, 10/15/27

    5,000       5,546,690  

Series G, 5.00%, 07/01/29

    150       160,049  

Series G, 5.00%, 07/01/30

    225       241,112  

Series G, 5.00%, 07/01/32

    425       455,778  

Series G, 5.00%, 07/01/34

    375       394,902  

Massachusetts Educational Financing Authority, RB, Series A, 2.46%, 07/01/30

    5,000       4,090,100  

Massachusetts Housing Finance Agency, RB, M/F Housing

   

Series A, 3.40%, 12/01/49

    3,115       2,402,920  

Series C1, (FHA HUD SECT 8), 2.75%, 12/01/55

    2,250       1,577,803  

Series C-1, 2.65%, 12/01/34

    2,950       2,531,625  

Series C-1, 3.10%, 12/01/44

    2,500       1,919,137  
 

 

 

S C H E D U L E   O F   I N V E S T M E N T S

  49


Schedule of Investments (unaudited) (continued)

November 30, 2022

  

BlackRock Strategic Municipal Opportunities Fund

(Percentages shown are based on Net Assets)

 

Security  

Par

(000)

    Value  
Massachusetts (continued)            

Massachusetts Housing Finance Agency, RB, M/F Housing (continued)

   

Series C-1, 3.25%, 12/01/54

  $ 7,790     $ 5,666,228  

Series C-1, 3.30%, 12/01/59

      10,000       7,192,980  

Series C-1, 3.35%, 06/01/62

    5,010       3,612,856  

Massachusetts Housing Finance Agency, Refunding RB, M/F Housing

   

Series B-1, (FHA), 2.75%, 12/01/34

    2,180       1,892,190  

Series B-1, (FHA), 3.30%, 12/01/56

    5,790       4,219,167  

Massachusetts Water Resources Authority, Refunding RB, Series C, 2.39%, 08/01/33

    9,380       7,521,334  
   

 

 

 
      122,171,255  
Michigan — 2.4%            

Grand Traverse County Hospital Finance Authority, Refunding RB

   

5.00%, 07/01/29

    1,175       1,296,933  

5.00%, 07/01/30

    1,710       1,902,062  

5.00%, 07/01/31

    2,700       3,019,902  

Michigan Finance Authority, RB
4.00%, 02/15/47

    10,000       9,131,200  

Class A, 5.00%, 12/01/28

    1,500       1,660,995  

Class A, 5.00%, 12/01/29

    2,000       2,237,786  

Class B, 5.00%, 12/01/43(b)

    10,000       10,859,560  

Series A, 6.50%, 06/01/57(a)

    4,020       3,787,351  

Series S, 5.00%, 11/01/44

    5,000       5,063,640  

Michigan Finance Authority, Refunding RB
5.00%, 11/15/37

    5,000       5,130,395  

4.00%, 12/01/46

    16,000       14,860,912  

4.00%, 02/15/44

    10,000       9,260,890  

Series B, 5.00%, 07/01/44

    5,000       5,019,920  

Michigan State Housing Development Authority, RB, M/F Housing

   

Series A, AMT, 3.80%, 10/01/38

    10,000       9,514,580  

Series A, AMT, 2.25%, 10/01/41

    5,140       3,645,473  

Series A, AMT, 2.45%, 10/01/46

    15,565       10,442,169  

Series A, AMT, 2.55%, 10/01/51

    8,700       5,601,721  

Series A, AMT, 4.15%, 10/01/53

    10,000       8,878,360  

Series A, AMT, 2.70%, 10/01/56

    4,175       2,671,015  

Series A, AMT, 2.73%, 10/01/59

    10,000       6,281,810  

Michigan State University, RB, Series B, (AMBAC), 3.72%, 02/15/37(b)

    5,000       4,918,000  

State of Michigan Trunk Line Revenue, RB, 4.00%, 11/15/44

    10,000       9,849,770  

State of Michigan, Refunding RB,
5.00%, 03/15/27

    5,000       5,459,330  
   

 

 

 
        140,493,774  
Minnesota — 0.7%            

City of Minneapolis, RB
4.00%, 11/15/36

    3,500       3,440,430  

4.00%, 11/15/37

    3,250       3,157,083  

4.00%, 11/15/38

    3,750       3,617,351  

4.00%, 11/15/39

    4,250       4,069,277  

City of Minneapolis, RB, M/F Housing, (FNMA COLL), 2.35%, 02/01/38

    7,000       5,663,770  

Minnesota Housing Finance Agency, RB, S/F Housing

   

Series B, (FHLMC,FNMA,GNMA), 2.40%, 01/01/35

    1,240       1,091,985  

Series B, (FHLMC,FNMA,GNMA), 2.63%, 01/01/40

    4,950       4,201,011  
Security   Par
(000)
     Value  
Minnesota (continued)             

Minnesota Housing Finance Agency, RB, S/F Housing (continued)

    

Series B, (FHLMC,FNMA,GNMA), 3.50%, 07/01/50

  $   7,480      $ 7,370,799  

Series E, (FHLMC,FNMA,GNMA), 1.85%, 01/01/29

    730        675,142  

Series E, (FHLMC,FNMA,GNMA), 1.90%, 07/01/29

    740        696,666  

Series E, (FHLMC,FNMA,GNMA), 1.95%, 01/01/30

    1,435        1,347,646  

Series E, (FHLMC,FNMA,GNMA), 2.05%, 01/01/31

    1,460        1,303,263  

Series E, Class E, (FHLMC,FNMA,GNMA), 2.50%, 07/01/40

    3,700        2,926,289  

Minnesota Housing Finance Agency, Refunding RB, S/F Housing, Series B, AMT, (FHLMC,FNMA,GNMA), 3.10%, 07/01/35

    605        558,778  
    

 

 

 
       40,119,490  
Mississippi — 0.2%             

Mississippi Business Finance Corp., Refunding RB, 2.38%, 06/01/44

    9,190        5,505,748  

Mississippi Home Corp,. RB, S/F Housing

    

Series A, AMT, (FHLMC, FNMA, GNMA), 2.13%, 12/01/44

    1,000        724,659  

Series A, AMT, (FHLMC, FNMA, GNMA), 3.00%, 12/01/50

    3,660        3,549,746  
    

 

 

 
       9,780,153  
Missouri — 1.6%             

City of St. Louis Missouri Airport Revenue, ARB, Series C, (AGM), 5.00%, 07/01/42

    5,000        5,184,690  

Health & Educational Facilities Authority of the State of Missouri, Refunding RB

    

Series A, 5.00%, 07/01/31

    5,000          5,652,045  

Series A, 5.00%, 07/01/32

    2,200        2,474,945  

Kansas City Industrial Development Authority, ARB AMT, (AGM), 5.00%, 03/01/57

    10,000        10,081,500  

Series A, Class A-AMT, AMT, 5.00%, 03/01/34

    5,000        5,219,310  

Series A, Class A-AMT, AMT, 5.00%, 03/01/35

    5,000        5,194,265  

Series A, Class A-AMT, AMT, 5.00%, 03/01/36

    5,000        5,171,935  

Series A, Class A-AMT, AMT, 5.00%, 03/01/39

    5,000        5,120,930  

Series B, Class B, AMT, 5.00%, 03/01/39

    5,000        5,134,285  

Kansas City Industrial Development Authority, RB

    

Series A, 10.00%, 11/15/37

    2,735        2,410,785  

Series C, 7.50%, 11/15/46

    1,701        1,364,780  

Kansas City Industrial Development Authority, Refunding RB

    

Class B, 5.00%, 11/15/46

    8,059        6,552,433  

Class D, 2.00%, 11/15/46

    3,597        160,524  

Missouri Housing Development Commission, RB, S/F Housing

    

Series A, (FHLMC,FNMA,GNMA), 2.55%, 11/01/40

    1,505        1,291,734  

Series A, (FHLMC,FNMA,GNMA), 2.70%, 11/01/45

    2,145        1,825,935  

Series A, (FHLMC,FNMA,GNMA), 3.50%, 11/01/50

    7,510        7,378,665  
 

 

 

50  

2 0 2 2   B L A C K R O C K   S E M I - A N N U A L   R E P O R T   T O   S H A R E H O L D E R S


Schedule of Investments (unaudited) (continued)

November 30, 2022

  

BlackRock Strategic Municipal Opportunities Fund

(Percentages shown are based on Net Assets)

 

Security  

Par

(000)

    Value  
Missouri (continued)            

Missouri State Environmental Improvement & Energy Resources Authority, Refunding RB, Series C, 2.75%, 09/01/33

  $ 25,000     $ 22,758,375  

St. Louis Land Clearance for Redevelopment Authority, Refunding RB, 3.88%, 10/01/35

    2,280       1,877,692  
   

 

 

 
      94,854,828  
Nebraska — 0.3%            

Metropolitan Utilities District of Omaha Gas System Revenue RB

   

5.00%, 12/01/32

    5,455       6,359,210  

5.00%, 12/01/33

    5,730       6,638,841  

5.00%, 12/01/34

    5,000       5,752,855  
   

 

 

 
      18,750,906  
Nevada — 0.7%            

City of Las Vegas Nevada Special Improvement District No. 607, Refunding SAB

   

5.00%, 06/01/23

    205       206,295  

5.00%, 06/01/24

    75       76,281  

City of North Las Vegas Nevada, GO, BAB, 6.57%, 06/01/40

    5,175       5,321,934  

Clark County Department of Aviation, Refunding RB

   

Series B, AMT, Subordinate, 5.00%, 07/01/27

    6,380       6,853,403  

Series A, Class A, Subordinate, 5.00%, 07/01/33

    2,800       3,125,811  

Series A, Class A, Subordinate, 5.00%, 07/01/34

    5,000       5,535,590  

Series A, Class A, Subordinate, 5.00%, 07/01/35

        5,000       5,488,070  

Clark County School District, GO

   

Series B, (AGM), 5.00%, 06/15/26

    5,000       5,363,235  

Series A, AMT, (AGM), 5.00%, 06/15/26

    5,000       5,363,480  

State of Nevada Department of Business & Industry, RB(a)

   

Series A, 4.50%, 12/15/29

    250       247,647  

Series A, Class A, 5.00%, 12/15/38

    965       952,947  

Washoe County School District, GO, Series A, 4.00%, 06/01/46

    5,000       4,701,830  
   

 

 

 
          43,236,523  
New Hampshire — 0.7%            

National Finance Authority, RB, Series 2020-1, Class A, 4.13%, 01/20/34

    19,211       18,412,464  

New Hampshire Business Finance Authority, Refunding RB

   

3.30%, 04/01/32

    12,880       9,986,250  

Series B, 4.63%, 11/01/42(a)

    7,900       7,267,471  

Series C, AMT, 4.88%, 11/01/42(a)

    2,995       2,743,172  
   

 

 

 
      38,409,357  
New Jersey — 2.4%            

Essex County Improvement Authority, RB

   

Series A, Class A, (BAM), 4.00%, 08/01/37

    300       292,509  

Series A, Class A, (BAM), 4.00%, 08/01/38

    610       590,605  

Series A, Class A, (BAM), 4.00%, 08/01/39

    630       607,086  

Series A, Class A, (BAM), 4.00%, 08/01/40

    330       316,215  

Series A, Class A, (BAM), 4.00%, 08/01/41

    350       332,816  

Industrial Pollution Control Financing Authority of Gloucester County, Refunding RB,
Series A, Class A, AMT, 5.00%, 12/01/24(j)

    620       631,319  

New Jersey Economic Development Authority, RB, Series B, 5.50%, 11/01/26(a)

    265       248,988  
Security  

Par

(000)

    Value  
New Jersey (continued)            

New Jersey Economic Development Authority, Refunding RB, Series A, AMT, 2.20%, 10/01/39(b)

  $ 50,000     $ 43,995,350  

New Jersey Health Care Facilities Financing Authority, RB

   

5.00%, 07/01/27

    1,350       1,473,821  

5.00%, 07/01/28

    2,000       2,217,454  

5.00%, 07/01/30

    2,120       2,414,055  

5.00%, 07/01/31

    5,430       5,866,751  

5.00%, 07/01/32

    3,000       3,416,763  

5.00%, 07/01/33

    1,475       1,658,639  

5.00%, 07/01/34

    5,500       6,119,014  

4.00%, 07/01/35

    3,885       3,949,429  

4.00%, 07/01/36

    4,000       4,017,924  

4.00%, 07/01/37

    3,650       3,640,849  

4.00%, 07/01/38

    2,850       2,815,227  

4.00%, 07/01/39

    6,000       5,885,154  

4.00%, 07/01/40

    6,000       5,879,502  

4.00%, 07/01/45

    10,000       9,427,420  

4.00%, 07/01/51

    2,255       2,057,987  

New Jersey Health Care Facilities Financing Authority, Refunding RB

   

Series A, 4.00%, 07/01/35

    5,000       5,037,645  

Series A, 5.00%, 07/01/39

    5,000       5,199,280  

Series A, 4.00%, 07/01/43

        10,000       9,585,880  

New Jersey Turnpike Authority, Refunding RB, Series D, 5.00%, 01/01/28

    10,000       10,671,760  
   

 

 

 
          138,349,442  
New Mexico — 0.4%            

New Mexico Mortgage Finance Authority, RB, S/F Housing, Series A, AMT, (FHLMC, FNMA, GNMA), 2.70%, 07/01/40

    2,380       2,078,038  

State of New Mexico Severance Tax Permanent Fund, RB

   

Series B, 5.00%, 07/01/29

    5,000       5,647,595  

Series B, 5.00%, 07/01/31

    5,000       5,813,510  

Series B, 5.00%, 07/01/32

    5,000       5,869,765  

Winrock Town Center Tax Increment Development District No.1, Refunding TA(a)

   

Senior Lien, 3.75%, 05/01/28

    500       477,332  

Senior Lien, 4.00%, 05/01/33

    1,035       900,286  

Senior Lien, 4.25%, 05/01/40

    1,750       1,443,194  
   

 

 

 
      22,229,720  
New York — 10.3%            

Nassau County Interim Finance Authority, Refunding RB, Series B, 1.28%, 11/15/28

    11,250       9,138,679  

New York City Housing Development Corp., RB, M/F Housing

   

Series A, (HUD SECT 8), 2.80%, 02/01/50

    50,000       34,407,000  

Series F-1, 2.25%, 11/01/41

    29,100       19,966,529  

Series G-1, 3.90%, 05/01/45

    5,000       4,380,015  

Series I, 2.25%, 11/01/36

    3,240       2,478,645  

Series I, 2.45%, 11/01/41

    6,200       4,429,602  

Series I, 2.65%, 11/01/46

    7,135       5,129,723  

Series I, 2.70%, 11/01/51

    8,285       5,402,234  

Series I, 2.80%, 05/01/56

    10,045       6,503,595  

Series I-1, 2.10%, 11/01/35

    2,915       2,226,818  

Series I-1, 2.55%, 11/01/45

    28,970       19,233,849  

Series I-1, 2.65%, 11/01/50

    5,000       3,245,575  
 

 

 

S C H E D U L E   O F   I N V E S T M E N T S

  51


Schedule of Investments (unaudited) (continued)

November 30, 2022

  

BlackRock Strategic Municipal Opportunities Fund

(Percentages shown are based on Net Assets)

 

Security  

Par

(000)

    Value  
New York (continued)            

New York City Housing Development Corp., RB, M/F Housing (continued)

   

Series I-1, 2.70%, 11/01/55

  $ 5,000     $ 3,161,750  

Series I-1, 2.80%, 11/01/60

    5,000       3,138,705  

Series J, 2.85%, 11/01/39

    8,000       6,275,192  

Series J, 3.00%, 11/01/44

    8,135       6,083,784  

Series J, 3.05%, 11/01/49

    10,000       7,158,950  

Series J, 3.15%, 11/01/54

    15,000       10,643,880  

Series J, 3.25%, 11/01/59

    10,000       7,480,840  

Series J, 3.35%, 11/01/65

    15,000       11,219,070  

Series A-1, RB, 3.95%, 11/15/44

    10,000       9,060,630  

New York City Housing Development Corp., Refunding RB, M/F Housing

   

2.25%, 11/01/31

    1,170       1,001,412  

Series C, 2.25%, 11/01/41

    8,495       5,806,205  

Series C, 2.40%, 11/01/46

    10,000       6,516,180  

Series C, 2.50%, 11/01/51

    14,155       8,778,690  

Series C, 2.60%, 11/01/56

    7,210       4,406,622  

New York City Transitional Finance Authority Future Tax Secured Revenue, RB,
Series C-3, 3.50%, 11/01/32

    16,000       13,954,560  

New York Liberty Development Corp., Refunding RB(a)

   

Series 2, Class 2, 5.15%, 11/15/34

    240       238,460  

Series 2, Class 2, 5.38%, 11/15/40

    570       571,351  

New York State Dormitory Authority, Refunding RB

   

Series A, 5.00%, 03/15/26

    5,000       5,369,200  

Series A, 5.00%, 03/15/31

    5,000       5,773,565  

Series B, 5.75%, 07/01/24(d)

    990       1,004,040  

Series E, 5.00%, 03/15/35

    25,000       28,297,925  

Series E, 5.00%, 03/15/36

    15,000       16,822,980  

Series E, 4.00%, 03/15/37

    25,000           25,361,525  

Series E, 4.00%, 03/15/38

    25,000       25,146,550  

Series E, 4.00%, 03/15/39

    15,000       15,043,890  

Catholic Health Services, 4.00%, 07/01/37

    1,860       1,319,071  

Catholic Health Services, 4.00%, 07/01/38

    1,650       1,139,851  

New York State Housing Finance Agency, RB, M/F Housing

   

Series H, (FNMA SONYMA), 2.25%, 11/01/29

    275       248,685  

Series H, (FNMA SONYMA), 2.35%, 11/01/30

    250       224,343  

Series H, (FNMA SONYMA), 2.40%, 11/01/31

    250       222,292  

Series H, (FNMA SONYMA), 3.15%, 11/01/44

    1,000       761,548  

Series I, (FNMA SONYMA), 2.40%, 05/01/31

    280       250,574  

Series I, (FNMA SONYMA), 2.75%, 11/01/34

    1,250       1,049,911  

Series I, (FNMA SONYMA), 3.15%, 11/01/44

    3,275       2,494,070  

Series K, (FHLMC,FNMA,GNMA SONYMA), 3.00%, 11/01/32

    1,500       1,363,859  

Series M, (FHLMC,FNMA,GNMA SONYMA), 3.15%, 11/01/32

    1,000       921,343  

Series M, (FHLMC,FNMA,GNMA SONYMA), 3.50%, 11/01/37

    415       363,172  

New York State Thruway Authority, Refunding RB

   

Series A, 5.00%, 03/15/30

        10,000       11,418,988  

Series A-1, 4.00%, 03/15/38

    10,000       10,067,040  

New York State Urban Development Corp., RB, 2.13%, 03/15/32

    500       387,792  

New York State Urban Development Corp., Refunding RB

   

5.00%, 09/15/28

    5,000       5,600,470  
Security  

Par

(000)

    Value  
New York (continued)            

New York State Urban Development Corp., Refunding RB (continued)

   

5.00%, 09/15/29

  $ 5,000     $ 5,676,915  

5.00%, 09/15/30

    5,000       5,742,405  

5.00%, 09/15/31

    5,000       5,801,130  

5.00%, 09/15/32

    5,000       5,836,165  

Series B, 2.84%, 03/15/32

    10,000       8,290,350  

New York Transportation Development Corp., ARB

   

AMT, 5.00%, 01/01/26

    10,000       10,194,700  

AMT, 5.00%, 01/01/27

    10,000       10,170,200  

AMT, 5.00%, 01/01/28

    10,000       10,260,590  

AMT, 5.00%, 01/01/29

    10,000       10,182,500  

AMT, 5.00%, 01/01/30

    10,000       10,118,760  

AMT, 5.00%, 01/01/34

    15,500       15,639,531  

Series A, AMT, 5.00%, 07/01/34

    5,000       5,046,485  

Series A, AMT, 5.00%, 07/01/41

    5,000       4,999,245  

Series A, AMT, 5.00%, 07/01/46

    50,000       48,701,600  

Series A, AMT, 5.25%, 01/01/50

    25,000       25,023,025  

New York Transportation Development Corp., Refunding RB

   

5.00%, 12/01/26

    1,450       1,513,433  

5.00%, 12/01/27

    1,500       1,569,627  

5.00%, 12/01/28

    1,300       1,361,712  

State of New York Mortgage Agency, RB, S/F Housing

   

Series 225, 2.45%, 10/01/45

    15,000       10,137,000  

Series 227, 2.30%, 10/01/40

    7,000       5,211,682  

Series 227, 2.50%, 10/01/47

    12,730       9,251,375  

Series 226, AMT, 1.80%, 04/01/28

    1,000       883,743  

Triborough Bridge & Tunnel Authority, Refunding RB, Senior Lien, 5.00%, 05/15/27

    10,000       10,949,480  
   

 

 

 
          605,252,882  
North Carolina — 2.9%            

City of Charlotte North Carolina Airport Special Facilities Revenue, Refunding ARB

   

5.00%, 07/01/34

    3,095       3,401,284  

5.00%, 07/01/49

    5,000       5,246,635  

Series A, 5.00%, 07/01/28

    2,395       2,655,571  

Series A, 5.00%, 07/01/29

    1,750       1,965,127  

Series A, 5.00%, 07/01/30

    2,250       2,555,854  

Series A, 5.00%, 07/01/31

    5,120       5,876,721  

Series A, 5.00%, 07/01/33

    5,750       6,520,615  

Series A, 5.00%, 07/01/34

    3,000       3,375,129  

Series A, 4.00%, 07/01/35

    3,100       3,149,749  

Series A, 4.00%, 07/01/36

    3,375       3,399,759  

Series A, 5.00%, 07/01/37

    5,000       5,502,985  

Series A, 4.00%, 07/01/38

    4,250       4,204,351  

Series A, 4.00%, 07/01/39

    5,000       4,910,940  

Series A, 4.00%, 07/01/41

    2,410       2,325,568  

Series A, 4.00%, 07/01/51

        10,000       9,375,270  

Series B, AMT, 4.00%, 07/01/51

    5,000       4,492,235  

City of Charlotte North Carolina Water & Sewer System Revenue, Refunding RB, Series A, 4.00%, 07/01/52

    5,000       4,901,395  

County of Mecklenburg North Carolina, GO 5.00%, 09/01/28

    10,000       11,227,430  

5.00%, 09/01/29

    10,000       11,417,750  

5.00%, 03/01/30

    5,745       6,523,873  

5.00%, 09/01/30

    10,000       11,604,620  

5.00%, 09/01/34

    10,000       11,774,320  
 

 

 

52  

2 0 2 2   B L A C K R O C K   S E M I - A N N U A L   R E P O R T   T O   S H A R E H O L D E R S


Schedule of Investments (unaudited) (continued)

November 30, 2022

  

BlackRock Strategic Municipal Opportunities Fund

(Percentages shown are based on Net Assets)

 

Security  

Par

(000)

    Value  
North Carolina (continued)            

County of Mecklenburg North Carolina, GO (continued)

   

5.00%, 09/01/35

  $ 5,000     $ 5,845,665  

North Carolina Housing Finance Agency, RB, S/F Housing

   

Series 43, (FHLMC,FNMA,GNMA), 2.63%, 01/01/35

    2,935       2,487,462  

Series 43, (FHLMC,FNMA,GNMA), 2.80%, 01/01/40

    5,025       4,299,877  

Series 44, 1.75%, 01/01/26

    935       884,088  

Series 44, 1.80%, 07/01/26

    1,205       1,130,984  

Series 44, 2.05%, 01/01/28

    1,280       1,182,673  

Series 44, 2.20%, 07/01/29

    1,010       920,028  

Series 44, 2.30%, 01/01/31

    1,060       942,615  

Series 44, 2.35%, 07/01/31

    935       804,212  

Series 44, 2.55%, 07/01/35

    1,175       983,338  

North Carolina Medical Care Commission, Refunding RB

   

5.00%, 06/01/45

    5,000       5,037,345  

Series A, 5.25%, 01/01/41(d)

    2,470       2,215,420  

Raleigh Durham Airport Authority, Refunding RB

   

Series A, AMT, 5.00%, 05/01/34

    5,000       5,200,960  

Series A, AMT, 5.00%, 05/01/35

    5,000       5,189,695  

State of North Carolina, GO, Series B, 5.00%, 06/01/29

    5,000       5,689,565  

Town of Mooresville North Carolina, SAB, 5.38%, 03/01/40(a)

    2,100       2,091,081  
   

 

 

 
      171,312,189  
North Dakota — 0.0%            

North Dakota Housing Finance Agency, RB, S/F Housing, 3.05%, 07/01/43

    715       616,665  
   

 

 

 
Ohio — 0.5%            

Ohio Housing Finance Agency, RB, S/F Housing

   

Series A, (FHLMC,FNMA,GNMA), 2.50%, 09/01/35

    1,275       1,166,352  

Series A, (FHLMC,FNMA,GNMA), 2.75%, 09/01/40

    2,335       2,091,504  

Ohio Turnpike & Infrastructure Commission, Refunding RB, Class A, Junior Lien, 5.00%, 02/15/33

    5,000       5,886,990  

Ohio Water Development Authority, RB,
Series A, AMT, 5.00%, 06/01/29

    10,000       11,299,950  

Ohio Water Development Authority, Water Pollution Control Loan Fund, RB, Series B, 5.00%, 12/01/26

    2,410       2,623,328  

University of Cincinnati, Refunding RB,
Series A, 5.00%, 06/01/44

    5,000       5,249,400  
   

 

 

 
          28,317,524  
Oklahoma — 0.2%            

Oklahoma Development Finance Authority, RB 7.25%, 09/01/51(a)

    5,010       5,172,429  

Series B, 5.50%, 08/15/52

        10,000       8,728,880  
   

 

 

 
      13,901,309  
Oregon — 1.7%            

Clackamas & Washington Counties School District No.3, GO, CAB, Series A, Class A, (GTD), 0.00%, 06/15/49(c)

    1,750       480,905  

County of Multnomah Oregon, GO, Series B, 0.80%, 06/15/26

    26,870       23,517,108  
Security  

Par

(000)

    Value  
Oregon (continued)            

Hospital Facilities Authority of Multnomah County Oregon, Refunding RB, Series A, 5.50%, 10/01/49

  $ 865     $ 850,049  

Oregon Health & Science University, Refunding RB, Series A, 4.00%, 07/01/51

    20,000       18,287,660  

Oregon State Facilities Authority, Refunding RB, Series A, 4.00%, 06/01/41

    10,000       9,457,380  

Port of Portland OR Airport Revenue, Refunding ARB, Series 28, AMT, 5.00%, 07/01/52

    5,000       5,087,680  

Port of Portland Oregon Airport Revenue, ARB, Series 24B, Class A-AMT, AMT, 5.00%, 07/01/47

    5,000       5,065,850  

Port of Portland Oregon Airport Revenue, Refunding ARB, Series 27-A, AMT, 4.00%, 07/01/50

    5,000       4,257,010  

Salem-Keizer School District No.24J, GO, CAB, Series A, (GTD), 0.00%, 06/15/40(c)

    12,395       5,541,743  

State of Oregon Housing & Community Services Department, RB, M/F Housing, Series B, AMT, (FHA FHLMC,FNMA,GNMA), 4.13%, 07/01/43

    165       160,626  

Tualatin Valley Fire & Rescue Rural Fire Protection District, GO

   

5.00%, 06/01/28

    5,875       6,555,543  

5.00%, 06/01/29

    5,865       6,648,435  

5.00%, 06/01/30

    5,000       5,751,670  

5.00%, 06/01/31

    5,000       5,833,190  
   

 

 

 
      97,494,849  
Pennsylvania — 3.2%            

Allegheny County Airport Authority, ARB

   

Series A, AMT, (AGM), 4.00%, 01/01/46

    10,000       9,353,310  

Series A, AMT, 5.00%, 01/01/51

        10,000       10,183,360  

Bucks County Industrial Development Authority, RB

   

4.00%, 07/01/46

    1,390       1,046,103  

4.00%, 07/01/51

    1,000       711,416  

Central Bradford Progress Authority, RB,
Series B, Class B, 4.00%, 12/01/51

    10,000       8,407,750  

Chester County Health and Education Facilities Authority, Refunding RB

   

Series A, Class A, 5.00%, 12/01/22

    895       894,990  

Series A, Class A, 5.00%, 12/01/23

    985       980,703  

Series A, Class A, 5.00%, 12/01/24

    1,035       1,024,709  

Series A, Class A, 5.00%, 12/01/25

    1,075       1,056,896  

Series A, Class A, 5.25%, 12/01/45

    1,500       1,342,535  

City of Philadelphia Pennsylvania Airport Revenue, Refunding ARB

   

AMT, 5.00%, 07/01/27

    5,000       5,291,215  

AMT, 5.00%, 07/01/28

    10,350           11,001,377  

Series B, AMT, 5.00%, 07/01/29

    5,000       5,256,445  

Series B, AMT, 5.00%, 07/01/30

    5,000       5,253,835  

Series B, AMT, 5.00%, 07/01/42

    5,000       5,071,870  

Commonwealth of Pennsylvania, GO, First Series, (BAM-TCRS), 4.00%, 03/01/35

    5,000       5,099,450  

County of Lehigh Pennsylvania, Refunding RB

   

5.00%, 07/01/44

    5,000       5,060,365  

Series A, 4.00%, 07/01/49

    10,000       8,464,690  

Geisinger Authority, Refunding RB, 5.00%, 04/01/43(b)

    10,000       10,571,600  

Lancaster County Hospital Authority,/PA RB, 5.00%, 11/01/51

    5,000       5,071,125  

Northampton County Industrial Development Authority, TA, 7.00%, 07/01/32

    1,725       1,735,678  

Pennsylvania Economic Development Financing Authority, RB

   

2.30%, 06/15/30

    8,000       6,583,296  
 

 

 

S C H E D U L E   O F   I N V E S T M E N T S

  53


Schedule of Investments (unaudited) (continued)

November 30, 2022

  

BlackRock Strategic Municipal Opportunities Fund

(Percentages shown are based on Net Assets)

 

Security  

Par

(000)

    Value  
Pennsylvania (continued)            

Pennsylvania Economic Development Financing Authority, RB (continued)

   

AMT, 5.00%, 12/31/38

  $ 5,000     $ 5,014,440  

AMT, 5.00%, 06/30/42

    5,000       5,021,610  

Pennsylvania Economic Development Financing Authority, Refunding RB

   

Series A, 5.00%, 10/15/28

    1,500       1,636,349  

Series A, 5.00%, 10/15/29

    1,650       1,815,597  

Series A, 5.00%, 10/15/31

    1,400       1,558,582  

Series A, 5.00%, 10/15/32

    1,100       1,219,394  

Series A, 5.00%, 10/15/33

    1,150       1,259,702  

Series A, 5.00%, 10/15/34

    1,400       1,521,468  

Series A, 4.00%, 10/15/37

    1,400       1,361,723  

Series A, 4.00%, 10/15/39

    1,325       1,270,672  

Series A, 4.00%, 10/15/40

    1,200       1,148,924  

AMT, 5.50%, 11/01/44

    3,250       3,255,502  

Pennsylvania Higher Educational Facilities Authority, Refunding RB

   

Series B, 4.00%, 08/15/37

    1,000       997,530  

Series B, 4.00%, 08/15/39

    1,000       984,052  

Pennsylvania Housing Finance Agency, RB, S/F Housing

   

Series 127B, 3.55%, 10/01/33

    9,915       9,662,614  

Series 2019-131A, 1.85%, 04/01/26

    1,550       1,472,987  

Series 2019-131A, 2.10%, 04/01/28

    1,915       1,770,065  

Series 125B, AMT, 3.65%, 10/01/42

    20,000       17,245,300  

Pennsylvania Housing Finance Agency, Refunding RB, S/F Housing

   

Series 121, 2.80%, 10/01/31

    11,770       10,742,232  

Series 134B, AMT, 5.00%, 04/01/27

    1,500       1,589,442  

Series 134B, AMT, 5.00%, 10/01/27

    1,250       1,331,561  

Philadelphia Authority for Industrial Development, Refunding RB, Series A, 5.00%, 09/01/35

    5,000       5,189,565  
   

 

 

 
          186,532,029  
Puerto Rico — 10.9%            

Children’s Trust Fund, RB, Series A, Class A, 0.00%, 05/15/57(c)

        307,385       20,322,145  

Commonwealth of Puerto Rico, GO

   

0.00%, 11/01/43(b)(c)

    59,841       27,325,804  

0.00%, 11/01/51(b)(c)

    97,281       34,423,791  

Series A1, Restructured, 5.63%, 07/01/29

    16,290       16,665,059  

Series A1, Restructured, 5.75%, 07/01/31

    7,605       7,788,753  

Series A1, Restructured, 4.00%, 07/01/33

    7,211       6,288,409  

Series A1, Restructured, 4.00%, 07/01/35

    6,482       5,535,464  

Series A1, Restructured, 4.00%, 07/01/37

    5,563       4,636,305  

Series A1, Restructured, 4.00%, 07/01/41

    7,564       6,062,317  

Series A1, Restructured, 4.00%, 07/01/46

    7,867       6,042,107  

Commonwealth of Puerto Rico, GO, CAB, Series A, Restructured, 0.00%, 07/01/33(c)

    9,280       5,069,223  

Commonwealth of Puerto Rico, RB, 0.00%, 11/01/51(b)(c)

    2,967       970,599  

Puerto Rico Commonwealth Aqueduct & Sewer Authority, RB(a)

   

Series A, AMT, 5.00%, 07/01/25

    315       318,232  

Series A, AMT, 5.00%, 07/01/33

    900       890,594  

Series A, AMT, 5.00%, 07/01/37

    450       434,475  

Series A, AMT, 4.00%, 07/01/42

    5,385       4,411,758  

Puerto Rico Commonwealth Aqueduct & Sewer Authority, Refunding RB(a)

   

Series B, 4.00%, 07/01/42

    7,250       5,882,592  
Security  

Par

(000)

    Value  
Puerto Rico (continued)            

Puerto Rico Commonwealth Aqueduct & Sewer Authority, Refunding RB(a) (continued)

   

Series B, 4.00%, 07/01/47

  $ 15,000     $     11,860,005  

Series C, 3.75%, 07/01/27

    43,100       38,626,435  

Series A, Senior Lien, 5.00%, 07/01/47

    9,795       9,044,106  

Puerto Rico Electric Power Authority, RB

   

3rd Series, 0.00%, 01/01/20(f)(g)

    1,908       1,444,992  

Series A-1, Class A1, 10.00%, 07/01/19

    928       723,649  

Series A-2, Class A2, 10.00%, 07/01/19

    4,681       3,650,837  

Series A-3, 10.00%, 07/01/19(f)(g)

    6,867       5,356,412  

Series B-3, 10.00%, 07/01/19(f)(g)

    6,867       5,356,411  

Series C-1, 5.40%, 01/01/18(f)(g)

        18,867       14,292,705  

Series C-2, 5.40%, 07/01/18(f)(g)

    18,870       14,295,016  

Series C-4, 5.40%, 07/01/20(f)(g)

    1,908       1,444,992  

Series CCC, 5.25%, 07/01/26(f)(g)

    8,495       6,273,133  

Series CCC, 5.25%, 07/01/28(f)(g)

    3,120       2,303,964  

Series D-1, Class D-1, 7.50%, 01/01/20

    9,399       7,120,052  

Series D-4, 7.50%, 07/01/20

    5,100       3,863,459  

Series TT, 5.00%, 07/01/18(f)(g)

    3,620       2,673,189  

Series TT, 5.00%, 07/01/20

    1,690       1,247,981  

Series WW, 5.50%, 07/01/17(f)(g)

    4,300       3,175,335  

Series WW, 5.50%, 07/01/18(f)(g)

    6,025       4,449,161  

Series WW, 5.50%, 07/01/20

    1,000       738,450  

Series WW, 5.38%, 07/01/24(f)(g)

    4,545       3,356,255  

Series WW, 5.25%, 07/01/25

    2,300       1,698,435  

Series WW, 5.25%, 07/01/33(f)(g)

    2,725       2,012,276  

Series XX, 5.25%, 07/01/35(f)(g)

    1,310       967,370  

Series XX, 5.75%, 07/01/36(f)(g)

    1,825       1,347,671  

Series A, AMT, 6.75%, 07/01/36(f)(g)

    24,370       18,461,274  

Series A, RB, 5.00%, 07/01/29(f)(g)

    5,540       4,091,013  

Series A, RB, 7.00%, 07/01/33(f)(g)

    7,445       5,639,893  

Series A, RB, 5.00%, 07/01/42(f)(g)

    23,970       17,700,647  

Series A, RB, 7.00%, 07/01/43(f)(g)

    3,350       2,537,762  

Series WW, RB, 5.50%, 07/01/38(f)(g)

    3,980       2,939,031  

Series XX, RB, 5.25%, 07/01/27(f)(g)

    2,630       1,942,124  

Series XX, RB, 5.25%, 07/01/40(f)(g)

    36,125       26,676,506  

Puerto Rico Electric Power Authority, Refunding RB

   

Series AAA, 5.25%, 07/01/22(f)(g)

    7,025       5,187,611  

Series AAA, 5.25%, 07/01/25

    5,750       4,246,088  

Series AAA, 5.25%, 07/01/28(f)(g)

    4,870       3,596,252  

Series BBB, 5.40%, 07/01/28

    9,505       7,018,967  

Series DDD, 5.00%, 07/01/19(f)(g)

    2,000       1,476,900  

Series DDD, 5.00%, 07/01/20

    1,810       1,336,595  

Series UU, 3.47%, 07/01/17(b)(f)(g)

    1,295       971,250  

Series UU, 0.00%, 07/01/18(b)(f)(g)

    1,165       873,750  

Series UU, 1.32%, 07/01/20(b)(f)(g)

    10,400       7,800,000  

Series UU, 3.21%, 07/01/31(b)(f)(g)

    12,285       9,213,750  

Series V, 5.50%, 07/01/20

    6,440       4,755,618  

Series ZZ, 5.25%, 07/01/18(f)(g)

    10,185       7,521,113  

Series ZZ, 5.25%, 07/01/19

    4,745       3,503,945  

Series ZZ, 5.25%, 07/01/24(f)(g)

    1,435       1,059,676  

Series ZZ, 5.25%, 07/01/25

    2,440       1,801,818  

Puerto Rico Electric Power Authority, Refunding RB, BAB, 6.13%, 07/01/40

    13,440       9,924,768  

Puerto Rico Industrial Tourist Educational Medical & Environmental Ctl Facs Fing Authority, Refunding RB

   

5.00%, 07/01/27

    450       478,212  

5.00%, 07/01/28

    400       428,536  

5.00%, 07/01/29

    470       506,893  

5.00%, 07/01/30

    600       650,762  
 

 

 

54  

2 0 2 2   B L A C K R O C K   S E M I - A N N U A L   R E P O R T   T O   S H A R E H O L D E R S


Schedule of Investments (unaudited) (continued)

November 30, 2022

  

BlackRock Strategic Municipal Opportunities Fund

(Percentages shown are based on Net Assets)

 

Security  

Par

(000)

    Value  
Puerto Rico (continued)            

Puerto Rico Industrial Tourist Educational Medical & Environmental Ctl Facs Fing Authority, Refunding RB (continued)

   

5.00%, 07/01/31

  $ 500     $ 544,862  

5.00%, 07/01/32

    500       544,166  

5.00%, 07/01/33

    500       538,110  

Puerto Rico Sales Tax Financing Corp. Sales Tax Revenue, RB

   

Series A-2, Convertiable, Restructured, 4.33%, 07/01/40

    4,554       4,110,768  

Series A-1, Restructured, 4.75%, 07/01/53

    77,623       69,997,161  

Series A-2, Restructured, 4.54%, 07/01/53

    14,353       12,486,823  

Series A-2, Restructured, 4.78%, 07/01/58

    39,524       35,705,468  

Series A-2, Restructured, 4.33%, 07/01/40

    52,906       47,740,734  

Puerto Rico Sales Tax Financing Corp. Sales Tax Revenue, RB, CAB(c)

   

Series A-1, Restructured, 0.00%, 07/01/29

    3,745       2,721,173  

Series A-1, Restructured, 0.00%, 07/01/33

    10,841       6,340,662  

Series B-1, Restructured, 0.00%, 07/01/46

        18,521       4,727,948  
   

 

 

 
          638,188,547  
Rhode Island — 0.4%            

Rhode Island Health and Educational Building Corp., RB, Series A, 5.00%, 09/01/33

    10,000       11,897,600  

Rhode Island Housing and Mortgage Finance Corp., RB, S/F Housing

   

2.50%, 04/01/45

    10,000       6,975,830  

Series 71, (GNMA), 2.75%, 10/01/34

    3,965       3,458,840  
   

 

 

 
      22,332,270  
South Carolina — 2.4%            

County of Dorchester South Carolina, SAB(a)

   

5.88%, 10/01/40

    2,310       2,339,804  

6.00%, 10/01/51

    6,240       6,250,670  

Lexington County Health Services District, Inc., RB, 5.00%, 11/01/41

    10,000       10,091,170  

South Carolina Jobs-Economic Development Authority, RB, 7.50%, 08/15/62(a)

    6,915       6,649,478  

South Carolina Jobs-Economic Development Authority, Refunding RB

   

Series A, 5.00%, 05/01/38

    5,000       5,175,890  

Series A, 5.00%, 05/01/43

    5,000       5,106,610  

South Carolina Public Service Authority, RB

   

Series A, 5.00%, 12/01/49

    10,000       10,045,660  

Series E, 5.00%, 12/01/48

    10,000       10,034,190  

Series E, 5.50%, 12/01/53

    5,000       5,039,705  

Series F, (AGM-CR), 5.74%, 01/01/30

    5,000       4,968,920  

South Carolina Public Service Authority, RB, BAB, Series C, (AGM-CR), 6.45%, 01/01/50

    10,950       11,677,627  

South Carolina Public Service Authority, Refunding RB

   

Series A, 5.00%, 12/01/50

    5,000       5,037,825  

Series B, 5.00%, 12/01/41

    5,000       5,087,190  

Series C, 5.00%, 12/01/46

    10,000       10,065,370  

South Carolina State Housing Finance & Development Authority, RB, S/F Housing

   

Series A, AMT, 1.75%, 01/01/26

    1,110       1,066,993  

Series A, AMT, 1.85%, 01/01/27

    955       909,341  

Series A, AMT, 1.88%, 07/01/27

    910       862,480  

Series A, AMT, 2.40%, 07/01/32

    1,090       1,008,784  

Series A, AMT, 2.80%, 07/01/34

    1,075       964,343  

Series A, AMT, 3.00%, 07/01/39

    2,075       1,816,314  
Security  

Par

(000)

    Value  
South Carolina (continued)            

South Carolina State Housing Finance & Development Authority, Refunding RB, S/F Housing

   

Series B, 2.25%, 07/01/30

  $ 890     $ 820,962  

Series B, 2.45%, 07/01/32

    895       799,001  

South Carolina Transportation Infrastructure Bank, Refunding RB

   

Series B, 5.00%, 10/01/30

    10,000       11,435,080  

Series B, 5.00%, 10/01/31

    10,000       11,577,510  

State of South Carolina, GO

   

Series A, 5.00%, 04/01/38

    5,000       5,668,345  

Series A, 5.00%, 04/01/39

    5,000       5,645,160  
   

 

 

 
          140,144,422  
Tennessee — 0.7%            

Metropolitan Nashville Airport Authority, ARB

   

Series A, Subordinate, 5.00%, 07/01/36

    1,435       1,559,430  

Series A, Subordinate, 4.00%, 07/01/49

    5,000       4,454,690  

Series A, Subordinate, 5.00%, 07/01/49

    10,000       10,335,870  

Series A, Subordinate, 4.00%, 07/01/54

    5,000       4,391,065  

New Memphis Arena Public Building Authority, RB, CAB

   

4.00%, 04/01/29(i)

    625       579,066  

4.00%, 04/01/30(i)

    750       698,195  

4.00%, 04/01/31(i)

    650       607,749  

0.00%, 04/01/32(c)

    1,500       1,021,729  

0.00%, 04/01/33(c)

    1,600       1,037,638  

0.00%, 04/01/34(c)

    1,500       917,096  

0.00%, 04/01/35(c)

    1,500       896,802  

0.00%, 04/01/36(c)

    1,500       781,904  

0.00%, 04/01/37(c)

    1,600       821,917  

0.00%, 04/01/38(c)

    700       341,036  

0.00%, 04/01/39(c)

    750       348,022  

0.00%, 04/01/41(c)

    810       334,479  

0.00%, 04/01/42(c)

    850       345,619  

0.00%, 04/01/43(c)

    1,700       625,792  

0.00%, 04/01/44(c)

    1,800       624,485  

0.00%, 04/01/45(c)

    2,000       654,658  

0.00%, 04/01/46(c)

    1,700       538,099  

Tennessee Housing Development Agency, Refunding RB, S/F Housing

   

3.85%, 07/01/42(k)

    4,995       4,857,742  

Series 2019-4, 2.65%, 07/01/34

    1,670       1,611,089  

Series 2019-4, 2.90%, 07/01/39

    3,760       3,650,956  
   

 

 

 
      42,035,128  
Texas — 4.5%            

Arlington Higher Education Finance Corp., RB(a)

   

6.25%, 08/15/24

    195       192,572  

7.88%, 11/01/62

    5,865       6,021,942  

Series A, 5.30%, 04/01/62

    4,325       4,021,108  

Board of Regents of the University of Texas System, Refunding RB

   

Series A, 5.00%, 08/15/28

    5,000       5,614,715  

Series A, 5.00%, 08/15/30

        10,000       11,577,510  

Series A, 5.00%, 08/15/32

    5,075       6,006,329  

City of Austin TX Water & Wastewater System Revenue, Refunding RB, 5.00%, 11/15/25

    3,325       3,546,871  

City of Houston Texas Airport System Revenue, ARB

   

Series A, Class A, AMT, 6.50%, 07/15/30

    1,000       1,000,135  

Series B-1, Class B-1, AMT, 5.00%, 07/15/35

    7,400       7,426,773  

City of Houston Texas Airport System Revenue, RB, Series A, AMT, 6.63%, 07/15/38

    3,000       3,001,947  
 

 

 

S C H E D U L E   O F   I N V E S T M E N T S

  55


Schedule of Investments (unaudited) (continued)

November 30, 2022

  

BlackRock Strategic Municipal Opportunities Fund

(Percentages shown are based on Net Assets)

 

Security  

Par

(000)

    Value  
Texas (continued)            

City of Houston Texas Airport System Revenue, Refunding RB

   

Sub-Series D, 5.00%, 07/01/37

  $ 5,000     $ 5,285,185  

Sub-Series D, 5.00%, 07/01/38

    5,000       5,266,260  

City of Houston Texas Combined Utility System Revenue, Refunding RB, CAB, Series A, (AGM), 0.00%, 12/01/28(c)(j)

      10,000       8,390,630  

City of Marble Falls Texas, SAB(a)
3.38%, 09/01/26

    230       224,065  

3.88%, 09/01/31

    200       187,494  

4.13%, 09/01/41

    730       627,538  

4.38%, 09/01/51

    1,000       822,698  

Conroe Independent School District, Refunding GO, Series A, 5.00%, 02/15/28

    5,000       5,543,720  

County of Martin TX, GO

   

5.00%, 02/15/27

    5,000       5,439,450  

5.00%, 02/15/28

    5,000       5,523,810  

Dallas Independent School District, Refunding GO

   

Series B, (PSF), 4.00%, 08/15/27

    6,750       6,603,586  

Series B, (PSF), 4.00%, 08/15/29

    9,000       8,679,132  

Goose Creek Consolidated Independent School District, GO, (PSF), 4.00%, 02/15/50

    5,000       4,855,630  

Grand Parkway Transportation Corp., Refunding RB, 4.00%, 10/01/49

    5,000       4,548,560  

Harris County Cultural Education Facilities Finance Corp., Refunding RB, 5.00%, 10/01/28

    5,000       5,476,465  

Hidalgo County Regional Mobility Authority, RB, CAB(c)

   

Series A, Class A, 0.00%, 12/01/42

    3,000       1,015,146  

Series A, Class A, 0.00%, 12/01/43

    3,000       958,386  

Series A, Class A, 0.00%, 12/01/44

    3,000       902,262  

Series A, Class A, 0.00%, 12/01/45

    4,000       1,131,140  

Series A, Class A, 0.00%, 12/01/46

    6,000       1,597,560  

Series A, Class A, 0.00%, 12/01/47

    6,125       1,523,306  

Series A, Class A, 0.00%, 12/01/48

    7,130       1,668,976  

Series A, Class A, 0.00%, 12/01/49

    7,135       1,571,184  

Series A, Class A, 0.00%, 12/01/50

    5,145       1,062,942  

Series A, Class A, 0.00%, 12/01/52

    6,945       1,270,122  

Series A, Class A, 0.00%, 12/01/53

    5,000       895,165  

Series A, Class A, 0.00%, 12/01/54

    5,000       883,450  

Leander Independent School District, GO, CAB, Series C, (PSF), 0.00%, 08/15/24(c)(d)

    95,000         32,293,225  

Matagorda County Navigation District No. 1, Refunding RB, 2.60%, 11/01/29

    15,000       13,455,840  

New Hope Cultural Education Facilities Finance Corp., RB, Series A, 5.00%, 08/15/39(a)

    1,210       1,212,265  

New Hope Cultural Education Facilities Finance Corp., Refunding RB
Class A, 6.63%, 10/01/43

    4,930       4,743,833  

Series A, 6.75%, 10/01/52

    790       747,718  

Series B2, 4.50%, 10/01/26

    2,030       1,976,481  

North Texas Municipal Water District Water System Revenue, Refunding RB, Series A, 5.00%, 09/01/29

    10,000       11,324,920  

Port Authority of Houston of Harris County Texas, ARB

   

5.00%, 10/01/27

    1,350       1,487,830  

5.00%, 10/01/51

    15,000       15,969,645  

Port Beaumont Navigation District, Refunding RB, Series B, 6.00%, 01/01/25(a)

    6,415       6,029,638  
Security  

Par

(000)

    Value  
Texas (continued)            

Port of Beaumont Industrial Development Authority, RB, 4.10%, 01/01/28(a)

  $   17,000     $ 13,783,804  

Round Rock Independent School District, Refunding, GO, Series A, 5.00%, 08/01/29

    5,000       5,678,345  

Texas Private Activity Bond Surface Transportation Corp., Refunding RB

   

Series A, 5.00%, 12/31/30

    5,365       5,744,869  

Series A, 5.00%, 12/31/31

    5,000       5,332,130  

Series A, 5.00%, 12/31/32

    5,000       5,313,440  

Series A, 5.00%, 12/31/34

    5,000       5,268,175  

Series A, 5.00%, 12/31/35

    5,000       5,241,625  
   

 

 

 
        265,967,547  
Utah — 1.0%            

City of Salt Lake City Utah Airport Revenue, ARB

   

Series A, Class A-AMT, AMT, 5.00%, 07/01/30

    7,670       8,308,827  

Series A, Class A-AMT, AMT, 5.00%, 07/01/31

    5,000       5,442,185  

Series A, Class A-AMT, AMT, 5.00%, 07/01/33

    6,110       6,550,806  

Series A, Class A-AMT, AMT, 5.00%, 07/01/46

    10,000       10,192,740  

Series A, Class A-AMT, AMT, 5.00%, 07/01/51

    10,000       10,097,430  

Nebo School District, Refunding, GO, (GTD), 5.00%, 07/01/35

    5,000       5,772,625  

Utah Charter School Finance Authority, RB(a)
5.63%, 06/15/26

    350       351,459  

5.00%, 06/15/42

    1,190       1,090,016  

5.00%, 06/15/52

    3,580       3,074,196  

5.63%, 06/15/54

    4,945       4,374,050  

5.00%, 06/15/57

    2,590       2,175,129  

Utah State Board of Regents, RB

   

2.55%, 06/01/38

    1,250       1,023,919  

2.63%, 06/01/39

    1,250       1,018,482  
   

 

 

 
      59,471,864  
Virginia — 2.1%            

Ballston Quarter Community Development Authority, TA

   

Series A, AMT, 5.38%, 03/01/36

    1,050       830,786  

Series A, AMT, 5.50%, 03/01/46

    6,210       4,428,394  

Cherry Hill Community Development Authority, SAB(a)

   

5.15%, 03/01/35

    1,000       989,963  

5.40%, 03/01/45

    1,995       1,941,171  

Chesapeake Bay Bridge & Tunnel District, RB
(AGM), 5.00%, 07/01/41

    5,000       5,140,875  

5.00%, 07/01/51

    5,000       5,008,845  

Dulles Town Center Community Development Authority, Refunding SAB, 4.00%, 03/01/23

    1,000       998,241  

FHLMC Multifamily VRD Certificates, RB M/F Housing, Series M053, Class A, 2.55%, 06/15/35

    18,945       15,483,729  

Hanover County Economic Development Authority, Refunding RB

   

5.00%, 07/01/38

    125       120,191  

4.00%, 07/01/47(a)

    1,960       1,509,345  

5.00%, 07/01/48

    365       326,288  

Henrico County Economic Development Authority, Refunding RB, 5.00%, 06/01/23

    420       420,205  

Loudoun County Economic Development Authority, RB, CAB, 0.00%, 07/01/49(c)

    25,115       7,848,563  

Lower Magnolia Green Community Development Authority, SAB(a)

   

5.00%, 03/01/35

    2,865       2,794,593  

5.00%, 03/01/45

    2,950       2,724,974  
 

 

 

56  

2 0 2 2   B L A C K R O C K   S E M I - A N N U A L   R E P O R T   T O   S H A R E H O L D E R S


Schedule of Investments (unaudited) (continued)

November 30, 2022

  

BlackRock Strategic Municipal Opportunities Fund

(Percentages shown are based on Net Assets)

 

Security  

Par

(000)

    Value  
Virginia (continued)            

Tobacco Settlement Financing Corp., Refunding RB, Series A-1, 6.71%, 06/01/46

  $   15,285     $ 14,213,231  

Virginia Housing Development Authority, RB, M/F Housing

   

Series D, 4.00%, 10/01/53

    10,000       8,234,050  

Series A, AMT, 3.65%, 03/01/43

    5,000       4,249,870  

Virginia Small Business Financing Authority, RB

   

AMT, 5.00%, 12/31/49

    5,000       4,994,535  

AMT, 5.00%, 12/31/52

    10,000       9,942,130  

Virginia Small Business Financing Authority, Refunding RB

   

AMT, Senior Lien, 4.00%, 01/01/29

    175       173,411  

AMT, Senior Lien, 4.00%, 07/01/29

    2,000       2,012,962  

AMT, Senior Lien, 4.00%, 01/01/30

    3,000       2,960,376  

AMT, Senior Lien, 4.00%, 07/01/30

    2,350       2,309,491  

AMT, Senior Lien, 4.00%, 01/01/31

    2,955       2,957,302  

AMT, Senior Lien, 4.00%, 07/01/31

    3,250       3,252,964  

AMT, Senior Lien, 4.00%, 01/01/32

    2,750       2,740,334  

AMT, Senior Lien, 4.00%, 07/01/32

    2,750       2,710,774  

AMT, Senior Lien, 4.00%, 01/01/33

    1,250       1,228,282  

AMT, Senior Lien, 4.00%, 07/01/33

    1,130       1,105,287  

AMT, Senior Lien, 4.00%, 01/01/34

    1,000       973,391  

AMT, Senior Lien, 4.00%, 07/01/34

    1,000       968,797  

AMT, Senior Lien, 4.00%, 01/01/35

    1,155       1,112,363  

AMT, Senior Lien, 4.00%, 07/01/35

    1,275       1,223,248  

AMT, Senior Lien, 4.00%, 01/01/36

    2,500       2,393,040  

AMT, Senior Lien, 4.00%, 01/01/37

    1,425       1,343,593  

AMT, Senior Lien, 4.00%, 01/01/38

    1,500       1,404,417  

AMT, Senior Lien, 4.00%, 01/01/39

    1,250       1,161,042  

AMT, Senior Lien, 4.00%, 01/01/40

    1,250       1,152,198  
   

 

 

 
        125,383,251  
Washington — 2.6%            

Central Puget Sound Regional Transit Authority, RB, Series S-1, 5.00%, 11/01/46

    10,000       11,495,470  

City of Seattle WA, Refunding, GO

   

Series A, 4.00%, 09/01/26

    5,000       5,241,535  

Series A, 4.00%, 09/01/27

    5,000       5,299,095  

King County Housing Authority, Refunding RB
(GTD), 3.50%, 05/01/38

    10,000       9,285,000  

(HUD SECT 8), 2.75%, 01/01/40

    1,900       1,473,406  

Mason County Public Hospital District No. 1, RB, 5.00%, 12/01/48

    5,000       5,047,685  

Pierce County School District No. 10 Tacoma, Refunding GO, (GTD), 1.73%, 12/01/31

    4,525       3,417,135  

Port of Seattle, Refunding ARB, Class C, AMT, Intermediate Lien, 5.00%, 08/01/33

    5,000       5,384,995  

Seattle Housing Authority, Refunding RB, M/F Housing, (HUD SECT 8), 3.50%, 12/01/35

    1,500       1,383,147  

State of Washington, Refunding GO

   

Series R-2018D, 5.00%, 08/01/26

    5,000       5,414,735  

Series R-2022D, 4.00%, 07/01/27

    10,000       10,577,930  

Washington Health Care Facilities Authority, Refunding RB
4.00%, 10/01/42(b)

    27,575       27,726,497  

Class D, 5.00%, 10/01/38

    10,000       10,135,420  

Series A, 5.00%, 08/01/37

    5,000       5,156,870  
Security  

Par

(000)

    Value  
Washington (continued)            

Washington State Convention Center Public Facilities District, RB

   

4.00%, 07/01/31

  $   11,045     $ 9,894,199  

Series B, 3.00%, 07/01/58

    6,790       4,047,988  

Washington State Housing Finance Commission, RB, M/F Housing, Series A-1, 3.50%, 12/20/35

    36,522       33,484,810  
   

 

 

 
      154,465,917  
Wisconsin — 3.0%            

Public Finance Authority, ARB

   

AMT, 4.00%, 07/01/41

    1,755       1,366,141  

AMT, 4.25%, 07/01/54

    3,060       2,166,667  

Public Finance Authority, RB(a)
6.00%, 06/15/24

    265       263,286  

6.75%, 11/01/24

    21,420       19,473,800  

5.00%, 04/01/40

    1,175       1,109,639  

5.00%, 04/01/50

    1,470       1,306,605  

Class B, 7.00%, 12/01/30

    2,000       1,891,754  

Series A, 6.25%, 10/01/31

    1,285       1,081,707  

Series A, 5.00%, 06/15/41

    785       702,066  

Series A, 7.00%, 11/01/46(f)(g)

    5,085       3,813,750  

Series A, 7.00%, 10/01/47

    1,285       1,016,598  

Series A, 5.00%, 06/15/51

    885       734,457  

Series A, 5.00%, 06/15/56

    970       784,066  

Series A-2, 5.00%, 01/01/24

    985       983,618  

Series B, 5.50%, 06/15/25

    555       545,825  

Series B, 5.62%, 06/01/29

    850       811,421  

Public Finance Authority, Refunding RB

   

Series A, 5.00%, 10/01/34(a)

    2,620       2,538,835  

Series A, 5.00%, 10/01/39(a)

    6,155       5,758,009  

Series A, 4.00%, 12/01/51

    650       472,127  

Series B, 6.13%, 10/01/49(a)

    8,530       7,549,476  

AMT, 4.00%, 08/01/35

    4,840       4,232,585  

Wisconsin Health & Educational Facilities Authority, RB, Series B, 5.00%, 02/15/42

    10,000       10,064,030  

Wisconsin Health & Educational Facilities Authority, Refunding RB

   

4.00%, 04/01/39

    16,835       15,805,304  

5.00%, 12/15/44

    10,000       10,073,030  

4.00%, 12/01/46

    15,000       13,625,475  

4.00%, 12/01/51

    65,000       57,456,425  

Series A, 5.00%, 11/15/35

    10,000       10,391,970  
   

 

 

 
      176,018,666  
   

 

 

 

Total Municipal Bonds — 92.0%
(Cost: $6,112,867,228)

 

      5,384,654,124  
   

 

 

 

Municipal Bonds Transferred to Tender Option Bond Trusts(k)

 

Arizona — 0.3%            

City of Phoenix Civic Improvement Corp., ARB, Series A, AMT, 5.00%, 07/01/47

    10,000       10,082,098  

Salt River Project Agricultural Improvement & Power District, Refunding RB, Series A, 5.00%, 12/01/45

    10,000       10,581,630  
   

 

 

 
      20,663,728  
California — 2.3%            

California Educational Facilities Authority, Refunding RB
5.00%, 09/01/45

    10,490       11,189,463  
 

 

 

S C H E D U L E   O F   I N V E S T M E N T S

  57


Schedule of Investments (unaudited) (continued)

November 30, 2022

  

BlackRock Strategic Municipal Opportunities Fund

(Percentages shown are based on Net Assets)

 

Security  

Par

(000)

    Value  
California (continued)            

California Educational Facilities Authority, Refunding RB (continued)

   

5.00%, 10/01/46

  $   10,000     $ 10,800,182  

California Health Facilities Financing Authority, RB

   

Series A, 5.00%, 08/15/43

    10,000       10,148,718  

Series A, 5.00%, 08/15/52(d)

    10,000       10,177,013  

California Infrastructure & Economic Development Bank, RB

   

5.00%, 05/15/47

    10,000       10,574,493  

5.00%, 05/15/52

    10,000       10,548,335  

California Public Finance Authority, Refunding RB, Series A, 5.00%, 08/01/47

    10,000       10,317,520  

Chaffey Joint Union High School District, GO, Series C, Class C, Election 2012, 5.25%, 08/01/47

    10,000       10,553,188  

Chino Valley Unified School District, GO, Series A, Election 2016, 5.25%, 08/01/47

    10,000       10,607,743  

City of Los Angeles Department of Airports, ARB, Series A, AMT, 5.25%, 05/15/48

    10,000       10,433,150  

East Bay Municipal Utility District Water System Revenue, RB, Series A, Class A, 5.00%, 06/01/42

    10,000       10,656,588  

Manteca Unified School District, GO, Series A, Election 2014, 5.00%, 08/01/40

    10,000       10,446,513  

San Marcos Unified School District, GO, Series C, Election 2010, 5.00%, 08/01/40(d)

    10,000       10,287,094  
   

 

 

 
        136,740,000  
Connecticut — 0.2%            

Connecticut State Health & Educational Facilities Authority, Refunding RB, 2021, 5.00%, 12/01/45

    10,000       10,211,903  
   

 

 

 
District of Columbia — 0.5%            

District of Columbia Water & Sewer Authority, RB

   

Series A, 5.00%, 10/01/52

    10,000       10,416,690  

Series A, Class A, Sub-Lien, 5.00%, 10/01/44(d)

    10,000       10,202,965  

Metropolitan Washington Airports Authority Aviation Revenue, Refunding ARB, AMT, 5.00%, 10/01/42

    10,000       10,261,005  
   

 

 

 
      30,880,660  
Florida — 0.7%            

East Central Regional Wastewater Treatment Facilities Operation Board, Refunding RB, 5.00%, 10/01/44

    10,000       10,523,153  

Florida Housing Finance Corp., RB, S/F Housing, Series 1, (FHLMC, FNMA, GNMA), 3.80%, 07/01/43

    2,280       2,304,534  

Greater Orlando Aviation Authority, ARB, Series A, AMT, 5.00%, 10/01/46

    10,000       10,133,945  

Miami-Dade County Seaport Department, Refunding RB, Series A-2, (AGM), 4.00%, 10/01/49

    10,000       9,237,087  

Tampa Bay Water, RB, 5.00%, 10/01/38

    10,000       10,178,305  
   

 

 

 
      42,377,024  
Georgia — 0.9%            

City of Atlanta Georgia Department of Aviation, ARB, Series B, AMT, 5.00%, 07/01/44

    10,000       10,329,975  

City of Atlanta Georgia Water & Wastewater Revenue, Refunding RB, 5.00%, 11/01/40

    10,000       10,385,714  
Security  

Par

(000)

    Value  
Georgia (continued)            

Clarke County Hospital Authority, Refunding RB, Series A, Class A, 5.00%, 07/01/46(l)

  $   10,000     $   10,121,248  

Development Authority of Cobb County, RB, Series A, 5.00%, 06/01/49(l)

    10,000       10,464,110  

Gainesville & Hall County Hospital Authority, Refunding RB, Series A, Class A, (GTD), 5.50%, 08/15/54(d)

    10,000       10,626,835  
   

 

 

 
      51,927,882  
Illinois — 0.2%            

Sales Tax Securitization Corp., Refunding RB, Series A, 2nd Lien, 5.00%, 01/01/33

    10,000       11,115,260  
   

 

 

 
Indiana — 0.2%            

Indiana Finance Authority, Refunding RB, 5.00%, 11/01/41

    10,000       10,211,638  
   

 

 

 
Iowa — 0.2%            

Iowa Finance Authority, Refunding RB, 5.00%, 08/01/42

    10,000       10,597,363  
   

 

 

 
Maryland — 0.5%            

City of Baltimore Maryland, RB, Series A, 5.00%, 07/01/43(d)

    10,000       10,257,216  

County of Montgomery Maryland, RB, Series 2016, 5.00%, 12/01/45

    10,000       10,192,420  

Maryland Stadium Authority, RB

   

Series A, 5.00%, 05/01/47

    6,590       7,065,182  

Series A, 5.00%, 05/01/47(d)

    3,410       3,655,883  
   

 

 

 
      31,170,701  
Massachusetts — 0.2%            

Commonwealth of Massachusetts, GO, Series A, AMT, 5.00%, 03/01/46

    10,000       10,174,278  
   

 

 

 
Michigan — 0.3%            

Michigan Finance Authority, Refunding RB

   

5.00%, 12/01/45

    9,855       10,024,893  

5.00%, 12/01/45(d)

    145       147,500  

Michigan State Housing Development Authority, RB, M/F Housing, Series A, AMT, 4.15%, 10/01/53

    10,000       8,878,360  
   

 

 

 
      19,050,753  
Minnesota — 0.2%            

Western Minnesota Municipal Power Agency, RB, Series A, AMT, 5.00%, 01/01/46(d)

    10,000       10,257,119  
   

 

 

 
Missouri — 0.5%            

Health & Educational Facilities Authority of the State of Missouri, RB, 5.00%, 01/01/44

    10,000       10,048,160  

Metropolitan St Louis Sewer District, Refunding RB

   

Series A, 5.00%, 05/01/47

    10,000       10,499,448  

Series B, 5.00%, 05/01/45

    6,785       7,107,340  

Series B, 5.00%, 05/01/45(d)

    3,215       3,367,737  
   

 

 

 
      31,022,685  
New Jersey — 0.1%            

New Jersey Health Care Facilities Financing Authority, RB, 4.00%, 07/01/51

    10,000       9,126,324  
   

 

 

 
 

 

 

58  

2 0 2 2   B L A C K R O C K   S E M I - A N N U A L   R E P O R T   T O   S H A R E H O L D E R S


Schedule of Investments (unaudited) (continued)

November 30, 2022

  

BlackRock Strategic Municipal Opportunities Fund

(Percentages shown are based on Net Assets)

 

Security  

Par

(000)

    Value  
New York — 1.7%            

Metropolitan Transportation Authority, RB, Series A, 5.00%, 11/15/42

  $   10,000     $ 10,464,605  

Metropolitan Transportation Authority, Refunding RB, Sub-Series B-1, 5.00%, 11/15/46

    10,000       10,322,388  

New York City Housing Development Corp., RB, M/F Housing, Series C-1A, 4.00%, 11/01/53

    9,245       7,692,064  

New York City Water & Sewer System, RB, Series DD, 5.00%, 06/15/47

    20,000       20,745,568  

New York State Dormitory Authority, RB

   

Series A, 5.00%, 03/15/39

    10,000       10,259,094  

Series A, 5.00%, 03/15/45

    10,000       10,460,240  

New York State Dormitory Authority, Refunding RB, Series E, 5.00%, 02/15/39

    10,000       10,355,213  

Port Authority of New York & New Jersey, Refunding ARB, Series 194th, 5.00%, 10/15/41

    10,000       10,301,808  

Utility Debt Securitization Authority, Refunding RB, Restructured, 5.00%, 12/15/37

    10,000       10,519,210  
   

 

 

 
        101,120,190  
North Carolina — 0.8%            

City of Charlotte North Carolina Airport Special Facilities Revenue, ARB

   

Series A, 5.00%, 07/01/42

    10,000       10,450,090  

Series A, 5.00%, 07/01/47

    10,000       10,366,945  

City of Charlotte North Carolina Airport Special Facilities Revenue, Refunding ARB, Series A, 4.00%, 07/01/51

    10,000       9,375,268  

North Carolina Capital Facilities Finance Agency, Refunding RB, Series B, 5.00%, 10/01/55(d)

    10,000       10,654,838  

North Carolina Housing Finance Agency, RB, S/F Housing

   

Series 39-B, (FHLMC, FNMA, GNMA), 3.85%, 07/01/38

    5,290       4,979,958  

Series 39-B, (FHLMC, FNMA, GNMA), 4.00%, 01/01/48

    1,845       1,815,930  
   

 

 

 
      47,643,029  
Oklahoma — 0.2%            

Oklahoma Turnpike Authority, RB, Sereis C, 5.00%, 01/01/47

    10,000       10,392,068  
   

 

 

 
Oregon — 0.4%            

Oregon State Facilities Authority, Refunding RB, Series A, 5.00%, 07/01/47

    10,000       11,038,085  

University of Oregon, RB, Series A, AMT, 5.00%, 04/01/48

    10,000       10,489,023  
   

 

 

 
      21,527,108  
Pennsylvania — 0.5%            

Lancaster County Hospital Authority, Refunding RB, 5.00%, 08/15/46

    10,000       10,231,563  

Philadelphia Authority for Industrial Development, RB, Series A, 5.00%, 07/01/42(d)

    20,000       20,720,336  
   

 

 

 
      30,951,899  
Tennessee — 0.2%            

Tennessee Housing Development Agency, RB, S/F Housing

   

Series 3, 3.85%, 07/01/43

    6,105       6,111,280  

Series 3, 3.95%, 01/01/49

    6,080       5,841,375  
   

 

 

 
      11,952,655  
Security  

Par

(000)

    Value  

 

 
Texas — 0.9%            

Alamo Regional Mobility Authority, RB, Senior Lien, 5.00%, 06/15/46(d)

  $ 10,000     $ 10,583,020  

City of San Antonio Texas Electric & Gas Systems Revenue, RB, Junior Lien, 5.00%, 02/01/48(d)

    10,000       10,040,813  

County of Harris Texas, Refunding RB, Series A, Senior Lien, 5.00%, 08/15/47

    10,000       10,416,430  

Midlothian Independent School District, GO, (PSF-GTD), 5.00%, 02/15/47

    10,000       10,453,235  

Texas Water Development Board, RB, Series A, 5.00%, 10/15/47

    10,000       10,521,645  
   

 

 

 
      52,015,143  
Utah — 0.2%            

Utah Transit Authority, Refunding RB, Series A, 5.00%, 06/15/38(d)

    10,000       10,600,069  
   

 

 

 
Virginia — 0.9%            

City of Norfolk Virginia Water Revenue, Refunding RB, 5.00%, 11/01/42

    10,000       10,618,585  

Fairfax County Industrial Development Authority, RB, Series A, 5.00%, 05/15/44

    10,000       10,122,273  

Fairfax County Water Authority, Refunding RB, 5.00%, 04/01/46

    10,000       10,527,313  

University of Virginia, Refunding RB, Series A-2, 5.00%, 04/01/45

    10,000       10,379,330  

Virginia Housing Development Authority, RB, M/F Housing, Series D, 3.90%, 10/01/48

    10,000       8,488,015  
   

 

 

 
      50,135,516  
Washington — 0.4%            

Port of Seattle Washington, ARB GO, 5.00%, 01/01/42

    10,000       10,485,120  

State of Washington, GO, Series B, 5.00%, 02/01/33

    10,000       10,497,815  
   

 

 

 
      20,982,935  
   

 

 

 

Total Municipal Bonds Transferred to Tender Option
Bond Trusts —13.5%
(Cost: $815,755,679)

 

    792,847,930  
   

 

 

 

Total Long-Term Investments — 106.9%
(Cost: $7,034,693,170)

 

    6,261,735,419  
   

 

 

 
    Shares        

 

 

Short-Term Securities

   
Money Market Funds — 0.7%            

BlackRock Liquidity Funds, MuniCash, Institutional Class, 1.59%(m)(n)

    38,834,935       38,838,818  
   

 

 

 

Total Short-Term Securities — 0.7%
(Cost: $38,836,595)

 

    38,838,818  
   

 

 

 

Total Investments — 107.6%
(Cost: $7,073,529,765)

      6,300,574,237  

Other Assets Less Liabilities — 1.8%

 

    103,720,896  

Liability for TOB Trust Certificates, Including Interest Expense and Fees Payable — (9.4)%

 

    (548,560,316
   

 

 

 

Net Assets — 100.0%

    $  5,855,734,817  
   

 

 

 
 

 

 

S C H E D U L E   O F   I N V E S T M E N T S

  59


Schedule of Investments (unaudited) (continued)

November 30, 2022

  

BlackRock Strategic Municipal Opportunities Fund

 

(a) 

Security exempt from registration pursuant to Rule 144A under the Securities Act of 1933, as amended. These securities may be resold in transactions exempt from registration to qualified institutional investors.

(b) 

Variable rate security. Interest rate resets periodically. The rate shown is the effective interest rate as of period end. Security description also includes the reference rate and spread if published and available.

(c) 

Zero-coupon bond.

(d) 

U.S. Government securities held in escrow, are used to pay interest on this security as well as to retire the bond in full at the date indicated, typically at a premium to par.

(e) 

Security is valued using significant unobservable inputs and is classified as Level 3 in the fair value hierarchy.

(f) 

Issuer filed for bankruptcy and/or is in default.

(g) 

Non-income producing security.

(h) 

When-issued security.

(i) 

Step coupon security. Coupon rate will either increase (step-up bond) or decrease (step-down bond) at regular intervals until maturity. Interest rate shown reflects the rate currently in effect.

(j) 

Security is collateralized by municipal bonds or U.S. Treasury obligations.

(k) 

Represent bonds transferred to a TOB Trust in exchange of cash and residual certificates received by the Fund. These bonds serve as collateral in a secured borrowing. See Note 4 of the Notes to Financial Statements for details.

(l) 

All or a portion of the security is subject to a recourse agreement. The aggregate maximum potential amount the Fund could ultimately be required to pay under the agreements, which expire between July 1, 2024 to June 1, 2025, is $15,513,889. See Note 4 of the Notes to Financial Statements for details.

(m) 

Affiliate of the Fund.

(n) 

Annualized 7-day yield as of period end.

 

For Fund compliance purposes, the Fund’s sector classifications refer to one or more of the sector sub-classifications used by one or more widely recognized market indexes or rating group indexes, and/or as defined by the investment adviser. These definitions may not apply for purposes of this report, which may combine such sector sub-classifications for reporting ease.

Affiliates

Investments in issuers considered to be affiliate(s) of the Fund during the six months ended November 30, 2022 for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:

 

 

 
Affiliated Issuer  

Value at

05/31/22

   

Purchases

at Cost

    Proceeds
from Sales
   

Net

Realized

Gain (Loss)

    Change in
Unrealized
Appreciation
(Depreciation)
    Value at
11/30/22
    Shares
Held at
11/30/22
    Income    

Capital Gain
Distributions
from

Underlying

Funds

 

 

 

BlackRock Liquidity Funds, MuniCash, Institutional Class

  $   181,906,552     $     $ (142,984,270 )(a)    $ (69,971   $ (13,493   $  38,838,818       38,834,935     $  1,311,945     $  
       

 

 

   

 

 

   

 

 

     

 

 

   

 

 

 

 

  (a)

Represents net amount purchased (sold).

 

Derivative Financial Instruments Outstanding as of Period End

Futures Contracts

 

 

 
Description    Number of
Contracts
     Expiration
Date
    

Notional

Amount (000)

     Value/
Unrealized
Appreciation
(Depreciation)
 

 

 

Short Contracts

           

10-Year U.S. Treasury Note

     8,122        03/22/23      $ 924,131      $ (6,695,642

U.S. Long Bond

     6,266        03/22/23        799,698        (6,359,187

5-Year U.S. Treasury Note

     4,090        03/31/23        444,915        (3,011,715
           

 

 

 
            $ (16,066,544
           

 

 

 

Derivative Financial Instruments Categorized by Risk Exposure

As of period end, the fair values of derivative financial instruments located in the Statements of Assets and Liabilities were as follows:

 

 

 
    Commodity
Contracts
    Credit
Contracts
    Equity
Contracts
    Foreign
Currency
Exchange
Contracts
   

Interest

Rate
Contracts

    Other
Contracts
    Total  

 

 

Liabilities — Derivative Financial Instruments

             

Futures contracts

             

Unrealized depreciation on futures contracts(a)

  $               —     $               —     $             —     $               —     $  16,066,544     $               —     $  16,066,544  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

  (a) 

Net cumulative unrealized appreciation (depreciation) on futures contracts and centrally cleared swaps, if any, are reported in the Schedule of Investments. In the Statements of Assets and Liabilities, only current day’s variation margin is reported in receivables or payables and the net cumulative unrealized appreciation (depreciation) is included in accumulated earnings (loss).

 

 

 

60  

2 0 2 2   B L A C K R O C K   S E M I - A N N U A L   R E P O R T   T O   S H A R E H O L D E R S


Schedule of Investments (unaudited) (continued)

November 30, 2022

  

BlackRock Strategic Municipal Opportunities Fund

 

For the period ended November 30, 2022, the effect of derivative financial instruments in the Statements of Operations was as follows:

 

               
     

Commodity

Contracts

    

Credit

Contracts

    

Equity

Contracts

    

Foreign

Currency

Exchange

Contracts

    

Interest

Rate

Contracts

    

Other

Contracts

     Total  

Net Realized Gain (Loss) from:

                    

Futures contracts

   $               —      $               —      $             —      $               —      $  168,393,999      $               —      $  168,393,999  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Net Change in Unrealized Appreciation (Depreciation) on:

                    

Futures contracts

   $      $      $      $      $ (34,735,932    $      $ (34,735,932
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Average Quarterly Balances of Outstanding Derivative Financial Instruments

 

   

Futures contracts:

  

Average notional value of contracts — short

   $ 1,862,706,930  

For more information about the Fund’s investment risks regarding derivative financial instruments, refer to the Notes to Financial Statements.

Fair Value Hierarchy as of Period End

Various inputs are used in determining the fair value of financial instruments. For a description of the input levels and information about the Fund’s policy regarding valuation of financial instruments, refer to the Notes to Financial Statements.

The following table summarizes the Fund’s financial instruments categorized in the fair value hierarchy. The breakdown of the Fund’s financial instruments into major categories is disclosed in the Schedule of Investments above.

 

                                                                                                           
         
      Level 1        Level 2        Level 3        Total  

Assets

                 

Investments

                 

Long-Term Investments

                 

Corporate Bonds

   $        $ 84,233,365        $        $ 84,233,365  

Municipal Bonds

              5,371,033,754          13,620,370          5,384,654,124  

Municipal Bonds Transferred to Tender Option Bond Trusts

              792,847,930                   792,847,930  

Short-Term Securities

                 

Money Market Funds

     38,838,818                            38,838,818  
  

 

 

      

 

 

      

 

 

      

 

 

 
   $       38,838,818         $  6,248,115,049         $     13,620,370         $  6,300,574,237  
  

 

 

      

 

 

      

 

 

      

 

 

 

Derivative Financial Instruments(a)

                 

Liabilities

                 

Interest Rate Contracts

   $ (16,066,544      $        $        $ (16,066,544
  

 

 

      

 

 

      

 

 

      

 

 

 

 

  (a) 

Derivative financial instruments are futures contracts. Futures contracts are valued at the unrealized appreciation (depreciation) on the instrument.

 

The Fund may hold assets and/or liabilities in which the fair value approximates the carrying amount for financial statement purposes. As of period end, TOB Trust Certificates of $545,679,973 are categorized as Level 2 within the fair value hierarchy.

See notes to financial statements.

 

 

S C H E D U L E   O F   I N V E S T M E N T S

  61


 

Statements of Assets and Liabilities (unaudited)

November 30, 2022

 

   

BlackRock

California

Municipal

Opportunities Fund

   

BlackRock

New Jersey

Municipal

Bond Fund

   

BlackRock

Pennsylvania

Municipal

Bond Fund

   

BlackRock

Impact

Municipal

Fund

 

 

 

ASSETS

       

Investments, at value — unaffiliated(a)

  $ 2,613,342,649     $ 291,290,669     $ 402,194,673     $ 44,768,356  

Investments, at value — affiliated(b)

    79,131,741       10,209,017       4,432,675       1,459,474  

Cash

    238,513       50,383       78,406       34,223  

Cash pledged for futures contracts

    23,858,000       357,000       540,000       252,000  

Receivables:

       

Investments sold

    8,026,746       499,078       5,403,223       1,031,797  

Capital shares sold

    10,414,914       1,121,897       481,373        

Dividends — affiliated

    94,381       16,238       10,186       3,582  

Interest — unaffiliated

    29,355,428       4,108,965       5,124,219       582,838  

From the Manager

                      3,553  

Variation margin on futures contracts

    3,373,831                    

Deferred offering costs

                      33,641  

Prepaid expenses

    68,651       39,494       41,450       30,905  
 

 

 

   

 

 

   

 

 

   

 

 

 

Total assets

    2,767,904,854       307,692,741       418,306,205       48,200,369  
 

 

 

   

 

 

   

 

 

   

 

 

 

ACCRUED LIABILITIES

       

Payables:

       

Investments purchased

    18,159,678       438,562       1,284,241       741,520  

TOB Trust

    10,014,729                    

Accounting services fees

    189,458       45,089       60,127       12,773  

Administration fees

                      3  

Capital shares redeemed

    20,997,859       1,335,086       1,483,258       55  

Custodian fees

    24,979       3,359       5,091       1,127  

Income dividend distributions

    1,363,518       261,657       428,616       125,861  

Interest expense and fees

    843,280                    

Investment advisory fees

    718,592       93,840       140,909        

Trustees’ and Officer’s fees

    11,321       1,597       2,286       11  

Other accrued expenses

    35,319       29,491       30,441        

Professional fees

          25,248       20,405       13,881  

Service and distribution fees

    211,704       35,176       35,189       18  

Transfer agent fees

    311,096       44,905       49,547       345  

Variation margin on futures contracts

    6,891,937       104,353       153,195       62,908  
 

 

 

   

 

 

   

 

 

   

 

 

 

Total accrued liabilities

    59,773,470       2,418,363       3,693,305       958,502  
 

 

 

   

 

 

   

 

 

   

 

 

 

OTHER LIABILITIES

       

TOB Trust Certificates

    170,654,950                    
 

 

 

   

 

 

   

 

 

   

 

 

 

Total liabilities

    230,428,420       2,418,363       3,693,305       958,502  
 

 

 

   

 

 

   

 

 

   

 

 

 

NET ASSETS

  $ 2,537,476,434     $ 305,274,378     $ 414,612,900     $ 47,241,867  
 

 

 

   

 

 

   

 

 

   

 

 

 

NET ASSETS CONSIST OF

       

Paid-in capital

  $ 2,808,653,481     $ 331,228,400     $ 478,147,347     $ 50,033,612  

Accumulated loss

    (271,177,047     (25,954,022     (63,534,447     (2,791,745
 

 

 

   

 

 

   

 

 

   

 

 

 

NET ASSETS

  $  2,537,476,434     $  305,274,378     $  414,612,900     $  47,241,867  
 

 

 

   

 

 

   

 

 

   

 

 

 

(a) Investments, at cost — unaffiliated

  $ 2,751,026,835     $ 299,579,542     $ 429,536,444     $ 47,315,481  

(b) Investments, at cost — affiliated

  $ 79,118,235     $ 10,207,236     $ 4,432,232     $ 1,459,182  

 

 

62  

2 0 2 2    B L A C K R O C K   S E M I - A N N U A L   R E P O R T   T O   S H A R E H O L D E R S


 

Statements of Assets and Liabilities (unaudited) (continued)

November 30, 2022

 

   

BlackRock

California

Municipal

Opportunities Fund

    

BlackRock

New Jersey

Municipal

Bond Fund

    

BlackRock

Pennsylvania

Municipal

Bond Fund

    

BlackRock

Impact

Municipal

Fund

 

 

 

NET ASSET VALUE

          

Institutional

          

Net assets

  $ 1,611,176,157      $ 164,944,383      $ 263,728,160      $ 117,018  
 

 

 

    

 

 

    

 

 

    

 

 

 

Shares outstanding

    137,461,645        16,405,338        27,221,508        12,399  
 

 

 

    

 

 

    

 

 

    

 

 

 

Net asset value

  $ 11.72      $ 10.05      $ 9.69      $ 9.44  
 

 

 

    

 

 

    

 

 

    

 

 

 

Shares authorized

    Unlimited        Unlimited        Unlimited            500 million  
 

 

 

    

 

 

    

 

 

    

 

 

 

Par value

  $ 0.10      $ 0.10      $ 0.10      $ 0.10  
 

 

 

    

 

 

    

 

 

    

 

 

 

Service

          

Net assets

    N/A      $ 6,641,932      $ 1,035,660        N/A  
 

 

 

    

 

 

    

 

 

    

 

 

 

Shares outstanding

    N/A        660,617        106,782        N/A  
 

 

 

    

 

 

    

 

 

    

 

 

 

Net asset value

    N/A      $ 10.05      $ 9.70        N/A  
 

 

 

    

 

 

    

 

 

    

 

 

 

Shares authorized

    N/A        Unlimited        Unlimited        N/A  
 

 

 

    

 

 

    

 

 

    

 

 

 

Par value

    N/A      $ 0.10      $ 0.10        N/A  
 

 

 

    

 

 

    

 

 

    

 

 

 

Investor A

          

Net assets

  $ 722,616,042      $ 103,699,183      $ 123,680,180      $ 94,365  
 

 

 

    

 

 

    

 

 

    

 

 

 

Shares outstanding

    61,705,203        10,305,728        12,751,842        10,000  
 

 

 

    

 

 

    

 

 

    

 

 

 

Net asset value

  $ 11.71      $ 10.06      $ 9.70      $ 9.44  
 

 

 

    

 

 

    

 

 

    

 

 

 

Shares authorized

    Unlimited        Unlimited        Unlimited        300 million  
 

 

 

    

 

 

    

 

 

    

 

 

 

Par value

  $ 0.10      $ 0.10      $ 0.10      $ 0.10  
 

 

 

    

 

 

    

 

 

    

 

 

 

Investor A1

          

Net assets

  $ 82,251,285      $ 13,508,301      $ 7,111,929        N/A  
 

 

 

    

 

 

    

 

 

    

 

 

 

Shares outstanding

    7,017,366        1,341,946        732,967        N/A  
 

 

 

    

 

 

    

 

 

    

 

 

 

Net asset value

  $ 11.72      $ 10.07      $ 9.70        N/A  
 

 

 

    

 

 

    

 

 

    

 

 

 

Shares authorized

    Unlimited        Unlimited        Unlimited        N/A  
 

 

 

    

 

 

    

 

 

    

 

 

 

Par value

  $ 0.10      $ 0.10      $ 0.10        N/A  
 

 

 

    

 

 

    

 

 

    

 

 

 

Investor C

          

Net assets

  $ 69,321,914      $ 14,314,159      $ 11,411,515        N/A  
 

 

 

    

 

 

    

 

 

    

 

 

 

Shares outstanding

    5,913,931        1,424,102        1,176,819        N/A  
 

 

 

    

 

 

    

 

 

    

 

 

 

Net asset value

  $ 11.72      $ 10.05      $ 9.70        N/A  
 

 

 

    

 

 

    

 

 

    

 

 

 

Shares authorized

    Unlimited        Unlimited        Unlimited        N/A  
 

 

 

    

 

 

    

 

 

    

 

 

 

Par value

  $ 0.10      $ 0.10      $ 0.10        N/A  
 

 

 

    

 

 

    

 

 

    

 

 

 

Class K

          

Net assets

  $ 52,111,036      $ 2,166,420      $ 7,645,456      $ 47,030,484  
 

 

 

    

 

 

    

 

 

    

 

 

 

Shares outstanding

    4,444,280        215,552        789,331        4,983,111  
 

 

 

    

 

 

    

 

 

    

 

 

 

Net asset value

  $ 11.73      $ 10.05      $ 9.69      $ 9.44  
 

 

 

    

 

 

    

 

 

    

 

 

 

Shares authorized

    Unlimited        Unlimited        Unlimited        500 million  
 

 

 

    

 

 

    

 

 

    

 

 

 

Par value

  $ 0.10      $ 0.10      $ 0.10      $ 0.10  
 

 

 

    

 

 

    

 

 

    

 

 

 

 

 

F I N A N C I A L   S T A T E M E N T S

  63


 

Statements of Assets and Liabilities (unaudited) (continued)

November 30, 2022

 

   

BlackRock

Strategic

Municipal

Opportunities Fund

 

 

 

ASSETS

 

Investments, at value — unaffiliated(a)

  $ 6,261,735,419  

Investments, at value — affiliated(b)

    38,838,818  

Cash pledged for futures contracts

    50,821,000  

Receivables:

 

Investments sold

    42,230,539  

Capital shares sold

    23,080,961  

Dividends — affiliated

    111,462  

Interest — unaffiliated

    76,660,469  

Prepaid expenses

    287,783  
 

 

 

 

Total assets

    6,493,766,451  
 

 

 

 

ACCRUED LIABILITIES

 

Bank overdraft

    188,878  

Payables:

 

Investments purchased

    20,949,196  

Accounting services fees

    451,579  

Capital shares redeemed

    45,456,152  

Custodian fees

    116,514  

Income dividend distributions

    3,427,505  

Interest expense and fees

    2,880,343  

Investment advisory fees

    2,227,724  

Trustees’ and Officer’s fees

    105,254  

Other accrued expenses

    93,119  

Professional fees

    47,377  

Service and distribution fees

    320,489  

Transfer agent fees

    829,143  

Variation margin on futures contracts

    15,258,388  
 

 

 

 

Total accrued liabilities

    92,351,661  
 

 

 

 

OTHER LIABILITIES

 

TOB Trust Certificates

    545,679,973  
 

 

 

 

Total liabilities

    638,031,634  
 

 

 

 

NET ASSETS

  $ 5,855,734,817  
 

 

 

 

NET ASSETS CONSIST OF

 

Paid-in capital

  $ 7,130,574,692  

Accumulated loss

    (1,274,839,875
 

 

 

 

NET ASSETS

  $ 5,855,734,817  
 

 

 

 

(a) Investments, at cost — unaffiliated

  $ 7,034,693,170  

(b) Investments, at cost — affiliated

  $ 38,836,595  

 

 

64  

2 0 2 2    B L A C K R O C K   S E M I - A N N U A L   R E P O R T   T O   S H A R E H O L D E R S


 

Statements of Assets and Liabilities (unaudited) (continued)

November 30, 2022

 

   

BlackRock

Strategic

Municipal

Opportunities Fund

 

 

 

NET ASSET VALUE

 

Institutional

 

Net assets

  $ 4,510,052,281  
 

 

 

 

Shares outstanding

    437,507,832  
 

 

 

 

Net asset value

  $ 10.31  
 

 

 

 

Shares authorized

    Unlimited  
 

 

 

 

Par value

  $ 0.10  
 

 

 

 

Investor A

 

Net assets

  $ 1,116,019,263  
 

 

 

 

Shares outstanding

    108,305,755  
 

 

 

 

Net asset value

  $ 10.30  
 

 

 

 

Shares authorized

    Unlimited  
 

 

 

 

Par value

  $ 0.10  
 

 

 

 

Investor A1

 

Net assets

  $ 17,180,073  
 

 

 

 

Shares outstanding

    1,666,757  
 

 

 

 

Net asset value

  $ 10.31  
 

 

 

 

Shares authorized

    Unlimited  
 

 

 

 

Par value

  $ 0.10  
 

 

 

 

Investor C

 

Net assets

  $ 96,698,102  
 

 

 

 

Shares outstanding

    9,379,190  
 

 

 

 

Net asset value

  $ 10.31  
 

 

 

 

Shares authorized

    Unlimited  
 

 

 

 

Par value

  $ 0.10  
 

 

 

 

Class K

 

Net assets

  $ 115,785,098  
 

 

 

 

Shares outstanding

    11,230,473  
 

 

 

 

Net asset value

  $ 10.31  
 

 

 

 

Shares authorized

    Unlimited  
 

 

 

 

Par value

  $ 0.10  
 

 

 

 

See notes to financial statements.

 

 

F I N A N C I A L   S T A T E M E N T S

  65


Statements of Operations (unaudited)

Six Months Ended November 30, 2022

 

   

BlackRock

California

Municipal

Opportunities Fund

   

BlackRock

New Jersey

Municipal

Bond Fund

   

BlackRock

Pennsylvania
Municipal

Bond Fund

   

BlackRock

Impact

Municipal

Fund

 

 

 

INVESTMENT INCOME

         

Dividends — affiliated

    $ 529,552     $ 132,525     $ 90,394     $ 13,256  

Interest — unaffiliated

      45,726,982       6,239,508       7,954,210       823,622  
   

 

 

   

 

 

   

 

 

   

 

 

 

Total investment income

      46,256,534       6,372,033       8,044,604       836,878  
   

 

 

   

 

 

   

 

 

   

 

 

 

EXPENSES

         

Investment advisory

      5,012,766       846,283       1,181,137       106,168  

Service and distribution — class specific

               1,387,754       227,816       234,503       118  

Transfer agent — class specific

      702,064       127,971       255,989       187  

Accounting services

      160,925       37,872       50,458       10,921  

Professional

      158,336       34,992       34,143       25,586  

Registration

      53,335       43,388       43,238       14,760  

Trustees and Officer

      22,947       3,387       4,578       699  

Custodian

      21,767       2,866       4,264       1,066  

Printing and postage

      19,602       18,302       18,394       3,000  

Administration

                        10,027  

Administration — class specific

                        4,718  

Offering

                        89,718  

Miscellaneous

      90,494       16,039       18,286       5,351  
   

 

 

   

 

 

   

 

 

   

 

 

 

Total expenses

      7,629,990       1,358,916       1,844,990       272,319  

Interest expense and fees(a)

      2,342,240       95,260       159,159        
   

 

 

   

 

 

   

 

 

   

 

 

 

Total expenses

      9,972,230       1,454,176       2,004,149       272,319  

Less:

         

Administration fees waived

                        (4,896

Administration fees waived — class specific

                        (4,625

Fees waived and/or reimbursed by the Manager

      (218,053     (237,495     (240,779     (137,610

Transfer agent fees waived and/or reimbursed by the Manager — class specific

      (69,504     (48,140     (148,981     (164
   

 

 

   

 

 

   

 

 

   

 

 

 

Total expenses after fees waived and/or reimbursed

      9,684,673       1,168,541       1,614,389       125,024  
   

 

 

   

 

 

   

 

 

   

 

 

 

Net investment income

      36,571,861       5,203,492       6,430,215       711,854  
   

 

 

   

 

 

   

 

 

   

 

 

 

REALIZED AND UNREALIZED GAIN (LOSS)

         

Net realized gain (loss) from:

         

Investments — unaffiliated

      (102,005,644     (9,745,386     (18,238,980     (806,022

Investments — affiliated

      (16,177     (8,881     (7,116     (74

Futures contracts

      68,949,577       2,363,475       3,468,903       663,919  
   

 

 

   

 

 

   

 

 

   

 

 

 
      (33,072,244     (7,390,792     (14,777,193     (142,177
   

 

 

   

 

 

   

 

 

   

 

 

 

Net change in unrealized appreciation (depreciation) on:

         

Investments — unaffiliated

      (38,881,153     (5,767,269     (8,779,144     (1,559,004

Investments — affiliated

      8,407       737       (331     90  

Futures contracts

      (14,228,410     (457,158     (731,622     (139,993
   

 

 

   

 

 

   

 

 

   

 

 

 
      (53,101,156     (6,223,690     (9,511,097     (1,698,907
   

 

 

   

 

 

   

 

 

   

 

 

 

Net realized and unrealized loss

      (86,173,400 )        (13,614,482 )        (24,288,290 )        (1,841,084
   

 

 

   

 

 

   

 

 

   

 

 

 

NET DECREASE IN NET ASSETS RESULTING FROM OPERATIONS

    $ (49,601,539   $ (8,410,990   $  (17,858,075   $  (1,129,230
   

 

 

   

 

 

   

 

 

   

 

 

 

 

(a) 

Related to TOB Trusts.

See notes to financial statements.

 

 

66  

2 0 2 2    B L A C K R O C K   S E M I - A N N U A L   R E P O R T   T O   S H A R E H O L D E R S


Statements of Operations (unaudited) (continued)

Six Months Ended November 30, 2022

 

   

BlackRock

Strategic

Municipal
Opportunities Fund

 

 

 

INVESTMENT INCOME

   

Dividends — affiliated

             $ 1,311,945  

Interest — unaffiliated

      115,646,267  
   

 

 

 

Total investment income

      116,958,212  
   

 

 

 

EXPENSES

   

Investment advisory

      17,048,759  

Transfer agent — class specific

      2,400,599  

Service and distribution — class specific

      2,114,370  

Professional

      396,889  

Accounting services

      356,409  

Registration

      159,521  

Custodian

      103,093  

Trustees and Officer

      54,974  

Printing and postage

      26,958  

Miscellaneous

      280,203  
   

 

 

 

Total expenses

      22,941,775  

Interest expense and fees(a)

      7,088,277  
   

 

 

 

Total expenses

      30,030,052  

Less:

   

Fees waived and/or reimbursed by the Manager

      (1,774,159
   

 

 

 

Total expenses after fees waived and/or reimbursed

      28,255,893  
   

 

 

 

Net investment income

      88,702,319  
   

 

 

 

REALIZED AND UNREALIZED GAIN (LOSS)

   

Net realized gain (loss) from:

   

Investments — unaffiliated

      (308,276,812

Investments — affiliated

      (69,971

Futures contracts

      168,393,999  
   

 

 

 
      (139,952,784
   

 

 

 

Net change in unrealized appreciation (depreciation) on:

   

Investments — unaffiliated

      (195,931,070

Investments — affiliated

      (13,493

Futures contracts

      (34,735,932
   

 

 

 
      (230,680,495
   

 

 

 

Net realized and unrealized loss

      (370,633,279
   

 

 

 

NET DECREASE IN NET ASSETS RESULTING FROM OPERATIONS

    $  (281,930,960
   

 

 

 

 

(a) 

Related to TOB Trusts.

See notes to financial statements.

 

 

F I N A N C I A L   S T A T E M E N T S

  67


Statements of Changes in Net Assets

 

    BlackRock California     BlackRock New Jersey  
    Municipal Opportunities Fund     Municipal Bond Fund  
 

 

 

   

 

 

 
   

Six Months Ended
11/30/22

(unaudited)

   

Year Ended

05/31/22

    Six Months Ended
11/30/22
(unaudited)
    Year Ended
05/31/22
 

 

 

INCREASE (DECREASE) IN NET ASSETS

       

OPERATIONS

       

Net investment income

  $ 36,571,861     $ 61,342,269     $ 5,203,492     $ 10,079,743  

Net realized gain (loss)

    (33,072,244     53,633,184       (7,390,792     (285,012

Net change in unrealized appreciation (depreciation)

    (53,101,156     (329,463,624     (6,223,690     (39,851,385
 

 

 

   

 

 

   

 

 

   

 

 

 

Net decrease in net assets resulting from operations

    (49,601,539     (214,488,171     (8,410,990     (30,056,654
 

 

 

   

 

 

   

 

 

   

 

 

 

DISTRIBUTIONS TO SHAREHOLDERS(a)

       

Institutional

    (23,635,913     (39,442,069     (2,967,732     (5,896,927

Service

                (104,695     (191,790

Investor A

    (9,780,494     (16,551,486     (1,688,435     (3,044,749

Investor A1

    (1,129,101     (1,805,179     (227,103     (422,914

Investor C

    (657,598     (920,007     (176,709     (390,028

Class K

    (1,101,282     (2,362,037     (40,201     (83,286
 

 

 

   

 

 

   

 

 

   

 

 

 

Decrease in net assets resulting from distributions to shareholders

    (36,304,388     (61,080,778     (5,204,875     (10,029,694
 

 

 

   

 

 

   

 

 

   

 

 

 

CAPITAL SHARE TRANSACTIONS

       

Net increase (decrease) in net assets derived from capital share transactions

    (411,726,285     43,146,802       (26,201,841     (13,042,661
 

 

 

   

 

 

   

 

 

   

 

 

 

NET ASSETS

       

Total decrease in net assets

    (497,632,212 )        (232,422,147 )        (39,817,706 )        (53,129,009

Beginning of period

    3,035,108,646       3,267,530,793       345,092,084       398,221,093  
 

 

 

   

 

 

   

 

 

   

 

 

 

End of period

  $  2,537,476,434     $  3,035,108,646     $  305,274,378     $  345,092,084  
 

 

 

   

 

 

   

 

 

   

 

 

 

 

(a) 

Distributions for annual periods determined in accordance with U.S. federal income tax regulations.

See notes to financial statements.

 

 

68  

2 0 2 2    B L A C K R O C K   S E M I - A N N U A L   R E P O R T   T O   S H A R E H O L D E R S


Statements of Changes in Net Assets (continued)

 

    BlackRock Pennsylvania     BlackRock Impact  
    Municipal Bond Fund     Municipal Fund  
 

 

   

 

 

 
 

Six Months Ended

11/30/22

(unaudited)

 

 

 

    
Year Ended
05/31/22
 
 
   

Six Months Ended

11/30/22

(unaudited)

 

 

 

    

Period from

03/14/22

to 05/31/22

 

(a) 

 

 

 

INCREASE (DECREASE) IN NET ASSETS

             

OPERATIONS

             

Net investment income

    $ 6,430,215      $ 14,111,556       $ 711,854      $ 156,034  

Net realized loss

      (14,777,193      (45,082       (142,177      (45,009

Net change in unrealized appreciation (depreciation)

      (9,511,097      (60,559,813             (1,698,907      (925,471
   

 

 

    

 

 

     

 

 

    

 

 

 

Net decrease in net assets resulting from operations

      (17,858,075      (46,493,339       (1,129,230      (814,446
   

 

 

    

 

 

     

 

 

    

 

 

 

DISTRIBUTIONS TO SHAREHOLDERS(b)

             

Institutional

      (4,325,415      (9,830,943       (1,728      (287

Service

      (14,538      (52,649               

Investor A

      (1,804,992      (3,560,600       (1,300      (235

Investor A1

      (104,144      (199,344               

Investor C

      (123,776      (266,830               

Class K

      (116,408      (191,918       (713,429      (147,976
   

 

 

    

 

 

     

 

 

    

 

 

 

Decrease in net assets resulting from distributions to shareholders

      (6,489,273 )         (14,102,284 )          (716,457 )         (148,498
   

 

 

    

 

 

     

 

 

    

 

 

 

CAPITAL SHARE TRANSACTIONS

             

Net increase (decrease) in net assets derived from capital share transactions

      (60,193,791      (42,903,828       50,498        50,000,000  
   

 

 

    

 

 

     

 

 

    

 

 

 

NET ASSETS

             

Total increase (decrease) in net assets

      (84,541,139      (103,499,451       (1,795,189      49,037,056  

Beginning of period

      499,154,039        602,653,490         49,037,056         
   

 

 

    

 

 

     

 

 

    

 

 

 

End of period

    $  414,612,900      $ 499,154,039       $  47,241,867      $  49,037,056  
   

 

 

    

 

 

     

 

 

    

 

 

 

 

(a) 

Commencement of operations.

(b) 

Distributions for annual periods determined in accordance with U.S. federal income tax regulations.

See notes to financial statements.

 

 

F I N A N C I A L   S T A T E M E N T S

  69


Statements of Changes in Net Assets (continued)

 

    BlackRock Strategic  
    Municipal Opportunities Fund  
 

 

 

 
   

Six Months Ended

11/30/22

(unaudited)

    Year Ended
05/31/22
 

 

 

INCREASE (DECREASE) IN NET ASSETS

   

OPERATIONS

   

Net investment income

  $ 88,702,319     $ 178,360,941  

Net realized gain (loss)

    (139,952,784     201,270,471  

Net change in unrealized appreciation (depreciation)

    (230,680,495     (1,061,013,019
 

 

 

   

 

 

 

Net decrease in net assets resulting from operations

    (281,930,960     (681,381,607
 

 

 

   

 

 

 

DISTRIBUTIONS TO SHAREHOLDERS(a)

   

Institutional

    (68,951,487     (141,257,072

Investor A

    (15,129,131     (31,249,214

Investor A1

    (261,206     (479,191

Investor C

    (930,574     (1,856,095

Class K

    (1,817,899     (3,522,594
 

 

 

   

 

 

 

Decrease in net assets resulting from distributions to shareholders

    (87,090,297     (178,364,166
 

 

 

   

 

 

 

CAPITAL SHARE TRANSACTIONS

   

Net decrease in net assets derived from capital share transactions

    (1,159,607,078 )        (365,894,985
 

 

 

   

 

 

 

NET ASSETS

   

Total decrease in net assets

    (1,528,628,335     (1,225,640,758

Beginning of period

    7,384,363,152       8,610,003,910  
 

 

 

   

 

 

 

End of period

  $ 5,855,734,817     $ 7,384,363,152  
 

 

 

   

 

 

 

 

(a) 

Distributions for annual periods determined in accordance with U.S. federal income tax regulations.

See notes to financial statements.

 

 

70  

2 0 2 2    B L A C K R O C K   S E M I - A N N U A L   R E P O R T   T O   S H A R E H O L D E R S


Financial Highlights

(For a share outstanding throughout each period)

 

    BlackRock California Municipal Opportunities Fund  
    Institutional  
    

Six Months Ended

11/30/22

(unaudited)

   

Year Ended

05/31/22

   

Year Ended

05/31/21

   

Year Ended

05/31/20

   

Year Ended

05/31/19

   

Year Ended

05/31/18

 

Net asset value, beginning of period

    $ 12.05     $ 13.08     $ 12.21     $ 12.71     $ 12.76     $ 12.60  
   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net investment income(a)

               0.16       0.25       0.25       0.27       0.34       0.34  

Net realized and unrealized gain (loss)

      (0.33     (1.03     0.87       (0.50     0.19       0.20  
   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net increase (decrease) from investment operations

      (0.17     (0.78     1.12       (0.23     0.53       0.54  
   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Distributions(b)

             

From net investment income

      (0.16     (0.25     (0.25     (0.27     (0.34     (0.34

From net realized gain

                              (0.24     (0.04
   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total distributions

      (0.16     (0.25     (0.25     (0.27     (0.58     (0.38
   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net asset value, end of period

    $ 11.72     $ 12.05     $ 13.08     $ 12.21     $ 12.71     $ 12.76  
   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total Return(c)

             

Based on net asset value

      (1.37 )%(d)       (6.06 )%      9.26     (1.85 )%      4.28     4.37
   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Ratios to Average Net Assets(e)

             

Total expenses(f)

      0.64 %(g)       0.49     0.48     0.57     0.63     0.57
   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total expenses after fees waived and/or reimbursed

      0.61 %(g)       0.47     0.46     0.55     0.61     0.54
   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total expenses after fees waived and/or reimbursed and excluding interest expense(h)

      0.44 %(g)       0.44     0.43     0.43     0.44     0.44
   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net investment income

      2.78 %(g)       1.95     1.98     2.13     2.70     2.68
   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Supplemental Data

             

Net assets, end of period (000)

    $  1,611,176     $  1,907,899     $  1,922,918     $  1,865,633     $  2,016,387     $  1,190,045  
   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Borrowings outstanding, end of period (000)

    $ 170,655     $ 147,795     $ 143,145     $ 148,145     $ 253,167     $ 141,267  
   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Portfolio turnover rate

      27     82     53     117     126     129
   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

(a) 

Based on average shares outstanding.

(b) 

Distributions for annual periods determined in accordance with U.S. federal income tax regulations.

(c) 

Where applicable, assumes the reinvestment of distributions.

(d) 

Not annualized.

(e) 

Excludes fees and expenses incurred indirectly as a result of investments in underlying funds.

(f) 

Includes recoupment of past waived and/or reimbursed fees. Excluding the recoupment of past waived and/or reimbursed fees, the expense ratios were as follows:

 

             
    

Six Months Ended

11/30/22

(unaudited)

    

  Year Ended

05/31/22

    

  Year Ended

05/31/21

    

  Year Ended

05/31/20

   

  Year Ended

05/31/19

   

  Year Ended

05/31/18

 
Expense ratios           N/A        N/A        N/A        0.56     0.62     0.57
    

 

 

    

 

 

    

 

 

    

 

 

   

 

 

   

 

 

 

 

(g) 

Annualized.

(h) 

Interest expense and fees relate to TOB Trusts. See Note 4 of the Notes to Financial Statements for details.

See notes to financial statements.

 

 

F I N A N C I A L   H I G H L I G H T S

  71


Financial Highlights (continued)

(For a share outstanding throughout each period)

 

    BlackRock California Municipal Opportunities Fund (continued)  
    Investor A  
    

Six Months Ended

11/30/22

(unaudited)

   

Year Ended

05/31/22

   

Year Ended

05/31/21

   

Year Ended

05/31/20

   

Year Ended

05/31/19

   

Year Ended

05/31/18

 

Net asset value, beginning of period

             $ 12.04     $ 13.07     $ 12.19     $ 12.70     $ 12.75     $ 12.58  
   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net investment income(a)

      0.15       0.22       0.22       0.24       0.31       0.31  

Net realized and unrealized gain (loss)

      (0.33     (1.03     0.88       (0.51     0.19       0.21  
   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net increase (decrease) from investment operations

      (0.18     (0.81     1.10       (0.27     0.50       0.52  
   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Distributions(b)

             

From net investment income

      (0.15     (0.22     (0.22     (0.24     (0.31     (0.31

From net realized gain

                              (0.24     (0.04
   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total distributions

      (0.15     (0.22     (0.22     (0.24     (0.55     (0.35
   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net asset value, end of period

    $ 11.71     $ 12.04     $ 13.07     $ 12.19     $ 12.70     $ 12.75  
   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total Return(c)

             

Based on net asset value

      (1.50 )%(d)      (6.30 )%      9.09     (2.18 )%      4.02     4.19
   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Ratios to Average Net Assets(e)

             

Total expenses

      0.87 %(f)       0.72     0.72     0.82 %(g)       0.88 %(g)       0.81 %(g) 
   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total expenses after fees waived and/or reimbursed

      0.86 %(f)       0.71     0.71     0.80     0.86     0.79
   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total expenses after fees waived and/or reimbursed and excluding interest expense(h)

      0.68 %(f)       0.68     0.68     0.68     0.69     0.69
   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net investment income

      2.54 %(f)       1.69     1.74     1.88     2.45     2.45
   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Supplemental Data

             

Net assets, end of period (000)

    $  722,616     $  843,462     $  1,025,162     $  1,069,541     $  941,069     $  631,410  
   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Borrowings outstanding, end of period (000)

    $ 170,655     $ 147,795     $ 143,145     $ 148,145     $ 253,167     $ 141,267  
   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Portfolio turnover rate

      27     82     53     117     126     129
   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

(a) 

Based on average shares outstanding.

(b) 

Distributions for annual periods determined in accordance with U.S. federal income tax regulations.

(c) 

Where applicable, excludes the effects of any sales charges and assumes the reinvestment of distributions.

(d) 

Not annualized.

(e) 

Excludes fees and expenses incurred indirectly as a result of investments in underlying funds.

(f) 

Annualized.

(g) 

Includes recoupment of past waived and/or reimbursed fees with no financial impact to the expense ratio.

(h) 

Interest expense and fees relate to TOB Trusts. See Note 4 of the Notes to Financial Statements for details.

See notes to financial statements.

 

 

72  

2 0 2 2   B L A C K R O C K   S E M I - A N N U A L   R E P O R T   T O   S H A R E H O L D E R S


Financial Highlights (continued)

(For a share outstanding throughout each period)

 

    BlackRock California Municipal Opportunities Fund (continued)  
    Investor A1  
    

Six Months Ended

11/30/22

(unaudited)

   

Year Ended

05/31/22

   

Year Ended

05/31/21

   

Year Ended

05/31/20

   

Year Ended

05/31/19

   

Year Ended

05/31/18

 

Net asset value, beginning of period

    $ 12.05     $ 13.08     $ 12.20     $ 12.71     $ 12.76     $ 12.59  
   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net investment income(a)

      0.16       0.24       0.24       0.26       0.33       0.33  

Net realized and unrealized gain (loss)

      (0.33     (1.03     0.88       (0.51     0.19       0.21  
   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net increase (decrease) from investment operations

      (0.17     (0.79     1.12       (0.25     0.52       0.54  
   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Distributions(b)

             

From net investment income

      (0.16     (0.24     (0.24     (0.26     (0.33     (0.33

From net realized gain

                              (0.24     (0.04
   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total distributions

      (0.16     (0.24     (0.24     (0.26     (0.57     (0.37
   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net asset value, end of period

    $ 11.72     $ 12.05     $ 13.08     $ 12.20     $ 12.71     $ 12.76  
   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total Return(c)

                      

Based on net asset value

      (1.42 )%(d)      (6.15 )%      9.25     (2.01 )%      4.18     4.35
   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Ratios to Average Net Assets(e)

             

Total expenses(f)

      0.72 %(g)       0.57     0.57     0.65     0.72     0.66
   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total expenses after fees waived and/or reimbursed

      0.70 %(g)       0.56     0.56     0.63     0.70     0.64
   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total expenses after fees waived and/or reimbursed and excluding interest expense(h)

      0.53 %(g)       0.53     0.53     0.51     0.53     0.54
   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net investment income

      2.69 %(g)       1.85     1.89     2.08     2.61     2.61
   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Supplemental Data

             

Net assets, end of period (000)

    $ 82,251     $ 88,442     $  103,726     $  103,229     $  112,554     $  118,780  
   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Borrowings outstanding, end of period (000)

    $  170,655     $  147,795     $ 143,145     $ 148,145     $ 253,167     $ 141,267  
   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Portfolio turnover rate

      27     82     53     117     126     129
   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

(a) 

Based on average shares outstanding.

(b) 

Distributions for annual periods determined in accordance with U.S. federal income tax regulations.

(c) 

Where applicable, excludes the effects of any sales charges and assumes the reinvestment of distributions.

(d) 

Not annualized.

(e) 

Excludes fees and expenses incurred indirectly as a result of investments in underlying funds.

(f) 

Includes recoupment of past waived and/or reimbursed fees. Excluding the recoupment of past waived and/or reimbursed fees, the expense ratios were as follows:

 

             
    

Six Months Ended

11/30/22

(unaudited)

    

  Year Ended

05/31/22

    

  Year Ended

05/31/21

    

Year Ended

05/31/20

   

Year Ended

05/31/19

   

Year Ended

05/31/18

 
Expense ratios             N/A        N/A        N/A        0.65     0.71     0.66
    

 

 

    

 

 

    

 

 

    

 

 

   

 

 

   

 

 

 

 

(g) 

Annualized.

(h) 

Interest expense and fees relate to TOB Trusts. See Note 4 of the Notes to Financial Statements for details.

See notes to financial statements.

 

 

F I N A N C I A L   H I G H L I G H T S

  73


Financial Highlights (continued)

(For a share outstanding throughout each period)

 

    BlackRock California Municipal Opportunities Fund (continued)  
    Investor C  
    

Six Months Ended

11/30/22

(unaudited)

   

Year Ended

05/31/22

   

Year Ended

05/31/21

   

Year Ended

05/31/20

   

Year Ended

05/31/19

   

Year Ended

05/31/18

 

Net asset value, beginning of period

             $ 12.05     $ 13.08     $ 12.21     $ 12.71     $ 12.76     $ 12.60  
   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net investment income(a)

      0.10       0.12       0.12       0.14       0.21       0.22  

Net realized and unrealized gain (loss)

      (0.33     (1.03     0.87       (0.50     0.19       0.20  
   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net increase (decrease) from investment operations

      (0.23     (0.91     0.99       (0.36     0.40       0.42  
   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Distributions(b)

             

From net investment income

      (0.10     (0.12     (0.12     (0.14     (0.21     (0.22

From net realized gain

                              (0.24     (0.04
   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total distributions

      (0.10     (0.12     (0.12     (0.14     (0.45     (0.26
   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net asset value, end of period

    $ 11.72     $ 12.05     $ 13.08     $ 12.21     $ 12.71     $ 12.76  
   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total Return(c)

             

Based on net asset value

      (1.87 )%(d)      (7.00 )%      8.17     (2.82 )%      3.24     3.33
   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Ratios to Average Net Assets(e)

             

Total expenses

      1.63 %(f)       1.48     1.48     1.57 %(g)       1.63 %(g)       1.57 %(g) 
   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total expenses after fees waived and/or reimbursed

      1.61 %(f)       1.47     1.47     1.56     1.61     1.54
   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total expenses after fees waived and/or reimbursed and excluding interest expense(h)

      1.44 %(f)       1.44     1.44     1.43     1.44     1.44
   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net investment income

      1.78 %(f)       0.93     0.99     1.14     1.70     1.70
   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Supplemental Data

             

Net assets, end of period (000)

    $ 69,322     $ 84,141     $ 107,235     $ 144,972     $ 150,543     $ 124,032  
   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Borrowings outstanding, end of period (000)

    $  170,655     $  147,795     $  143,145     $  148,145     $  253,167     $  141,267  
   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Portfolio turnover rate

      27     82     53     117     126     129
   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

(a) 

Based on average shares outstanding.

(b) 

Distributions for annual periods determined in accordance with U.S. federal income tax regulations.

(c) 

Where applicable, excludes the effects of any sales charges and assumes the reinvestment of distributions.

(d) 

Not annualized.

(e) 

Excludes fees and expenses incurred indirectly as a result of investments in underlying funds.

(f) 

Annualized.

(g) 

Includes recoupment of past waived and/or reimbursed fees with no financial impact to the expense ratio.

(h) 

Interest expense and fees relate to TOB Trusts. See Note 4 of the Notes to Financial Statements for details.

See notes to financial statements.

 

 

74  

2 0 2 2   B L A C K R O C K   S E M I - A N N U A L   R E P O R T   T O   S H A R E H O L D E R S


Financial Highlights (continued)

(For a share outstanding throughout each period)

 

    BlackRock California Municipal Opportunities Fund (continued)  
    Class K  
   

Six Months Ended

11/30/22

(unaudited)

 

 

 

   

Year Ended

05/31/22

 

 

   

Year Ended

05/31/21

 

 

   

Year Ended

05/31/20

 

 

   

Year Ended

05/31/19

 

 

   

Period from

01/25/18

to 05/31/18

 

(a)  

 

Net asset value, beginning of period

             $ 12.05     $ 13.08     $ 12.21     $ 12.71     $ 12.76     $ 12.71  
   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net investment income(b)

      0.17       0.26       0.26       0.28       0.34       0.11  

Net realized and unrealized gain (loss)

      (0.32     (1.04     0.87       (0.50     0.19       0.06  
   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net increase (decrease) from investment operations

      (0.15     (0.78     1.13       (0.22     0.53       0.17  
   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Distributions(c)

             

From net investment income

      (0.17     (0.25     (0.26     (0.28     (0.34     (0.12

From net realized gain

                              (0.24      
   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total distributions

      (0.17     (0.25     (0.26     (0.28     (0.58     (0.12
   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net asset value, end of period

    $ 11.73     $ 12.05     $ 13.08     $ 12.21     $ 12.71     $ 12.76  
   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total Return(d)

             

Based on net asset value

      (1.27 )%(e)      (6.01 )%      9.31     (1.80 )%      4.33     1.31 %(e)  
   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Ratios to Average Net Assets(f)

             

Total expenses

      0.58 %(g)       0.43     0.43     0.51 %(h)       0.58     0.54 %(g)(i)  
   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total expenses after fees waived and/or reimbursed

      0.56 %(g)       0.42     0.42     0.50     0.56     0.49 %(g)  
   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total expenses after fees waived and/or reimbursed and excluding interest expense(j)

      0.39 %(g)       0.39     0.39     0.38     0.39     0.39 %(g)  
   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net investment income

      2.78 %(g)       1.99     2.02     2.19     2.71     2.76 %(g)  
   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Supplemental Data

             

Net assets, end of period (000)

    $ 52,111     $ 111,164     $ 108,489     $ 108,494     $ 113,480     $ 36,441  
   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Borrowings outstanding, end of period (000)

    $  170,655     $  147,795     $  143,145     $  148,145     $  253,167     $  141,267  
   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Portfolio turnover rate

      27     82     53     117     126     129
   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

(a) 

Commencement of operations.

(b) 

Based on average shares outstanding.

(c) 

Distributions for annual periods determined in accordance with U.S. federal income tax regulations.

(d) 

Where applicable, assumes the reinvestment of distributions.

(e) 

Not annualized.

(f) 

Excludes fees and expenses incurred indirectly as a result of investments in underlying funds.

(g) 

Annualized.

(h) 

Includes recoupment of past waived and/or reimbursed fees with no financial impact to the expense ratio.

(i) 

Offering costs were not annualized in the calculation of the expense ratios. If these expenses were annualized, the total expenses would have been 0.54%.

(j) 

Interest expense and fees relate to TOB Trusts. See Note 4 of the Notes to Financial Statements for details.

See notes to financial statements.

 

 

F I N A N C I A L   H I G H L I G H T S

  75


Financial Highlights (continued)

(For a share outstanding throughout each period)

 

   

BlackRock New Jersey Municipal Bond Fund

 

 
   

Institutional

 

 
   

Six Months Ended

11/30/22

(unaudited)

   

Year Ended

05/31/22

    Year Ended
05/31/21
    Year Ended
05/31/20
    Year Ended
05/31/19
    Year Ended
05/31/18
 
               

Net asset value, beginning of period

 

         

 

$

10.45

 

  $ 11.59     $ 10.84     $ 11.30     $ 11.05     $ 11.05  
   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net investment income(a)

      0.17       0.31       0.35       0.37       0.40       0.40  

Net realized and unrealized gain (loss)

      (0.40     (1.15     0.75       (0.46     0.25       (0.00 )(b)  
   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net increase (decrease) from investment operations

      (0.23     (0.84     1.10       (0.09     0.65       0.40  
   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Distributions from net investment income(c)

      (0.17     (0.30     (0.35     (0.37     (0.40     (0.40
   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net asset value, end of period

    $ 10.05     $ 10.45     $ 11.59     $ 10.84     $ 11.30     $ 11.05  
   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total Return(d)

             

Based on net asset value

      (2.20 )%(e)      (7.37 )%      10.23     (0.89 )%      6.05     3.69
   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Ratios to Average Net Assets(f)

             

Total expenses

      0.77 %(g)       0.74     0.73     0.81     0.85     0.84
   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total expenses after fees waived and/or reimbursed

      0.58 %(g)       0.56     0.56     0.63     0.65     0.64
   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total expenses after fees waived and/or reimbursed and excluding interest expense(h)

      0.52 %(g)       0.52     0.52     0.52     0.52     0.54
   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net investment income

      3.34 %(g)       2.70     3.06     3.27     3.65     3.60
   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Supplemental Data

             

Net assets, end of period (000)

    $  164,944     $  190,069     $  215,903     $  188,512     $  178,716     $  152,759  
   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Borrowings outstanding, end of period (000)

    $     $ 16,739     $ 17,972     $ 22,054     $ 16,419     $ 16,419  
   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Portfolio turnover rate

      23     20     16     21     15     16
   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

(a) 

Based on average shares outstanding.

(b) 

Amount is less than $0.005 per share.

(c) 

Distributions for annual periods determined in accordance with U.S. federal income tax regulations.

(d) 

Where applicable, assumes the reinvestment of distributions.

(e) 

Not annualized.

(f) 

Excludes fees and expenses incurred indirectly as a result of investments in underlying funds.

(g) 

Annualized.

(h) 

Interest expense and fees relate to TOB Trusts. See Note 4 of the Notes to Financial Statements for details.

See notes to financial statements.

 

 

76  

2 0 2 2   B L A C K R O C K   S E M I - A N N U A L   R E P O R T   T O   S H A R E H O L D E R S


Financial Highlights (continued)

(For a share outstanding throughout each period)

 

   

BlackRock New Jersey Municipal Bond Fund (continued)

 

 
   

Service

 

 
   

Six Months Ended

11/30/22

(unaudited)

   

Year Ended

05/31/22

   

Year Ended

05/31/21

   

Year Ended

05/31/20

   

Year Ended

05/31/19

   

Year Ended

05/31/18

 
                         

Net asset value, beginning of period

    $ 10.45         $ 11.59         $ 10.84         $ 11.30         $ 11.05         $ 11.05  
   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

 

Net investment income(a)

 

        

    0.16         0.27         0.32         0.34         0.37         0.37  

Net realized and unrealized gain (loss)

      (0.40       (1.13       0.75         (0.46       0.25         (0.00 )(b) 
   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

 

Net increase (decrease) from investment operations

      (0.24       (0.86       1.07         (0.12       0.62         0.37  
   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

 

Distributions from net investment income(c)

      (0.16       (0.28       (0.32       (0.34       (0.37       (0.37
   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

 

Net asset value, end of period

    $ 10.05       $ 10.45       $ 11.59       $ 10.84       $ 11.30       $ 11.05  
   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

 

Total Return(d)

                       

Based on net asset value

      (2.32 )%(e)        (7.60 )%        9.96       (1.13 )%        5.79       3.43
   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

 

Ratios to Average Net Assets(f)

                       

Total expenses

      1.02 %(g)        0.96       0.96       1.02       1.08       1.09
   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

 

Total expenses after fees waived and/or reimbursed

      0.83 %(g)        0.81       0.81       0.88       0.90       0.89
   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

 

Total expenses after fees waived and/or reimbursed and excluding interest expense(h)

      0.77 %(g)        0.77       0.77       0.77       0.77       0.79
   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

 

Net investment income

      309 %(g)        2.42       2.77       2.98       3.34       3.35
   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

 

Supplemental Data

                       

Net assets, end of period (000)

    $  6,642       $ 7,293       $ 7,955       $ 7,466       $ 7,874       $ 7,921  
   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

 

Borrowings outstanding, end of period (000)

    $       $ 16,739       $ 17,972       $ 22,054       $ 16,419       $ 16,419  
   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

 

Portfolio turnover rate

      23       20       16       21       15       16
   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

 

 

(a) 

Based on average shares outstanding.

(b) 

Amount is greater than $(0.005) per share.

(c) 

Distributions for annual periods determined in accordance with U.S. federal income tax regulations.

(d) 

Where applicable, assumes the reinvestment of distributions.

(e) 

Not annualized.

(f) 

Excludes fees and expenses incurred indirectly as a result of investments in underlying funds.

(g) 

Annualized.

(h) 

Interest expense and fees relate to TOB Trusts. See Note 4 of the Notes to Financial Statements for details.

See notes to financial statements.

 

 

F I N A N C I A L   H I G H L I G H T S

  77


Financial Highlights (continued)

(For a share outstanding throughout each period)

 

   

BlackRock New Jersey Municipal Bond Fund (continued)

 

 
   

Investor A

 

 
   

Six Months Ended

11/30/22

(unaudited)

   

Year Ended

05/31/22

   

Year Ended

05/31/21

   

Year Ended

05/31/20

   

Year Ended

05/31/19

   

Year Ended

05/31/18

 
                         

Net asset value, beginning of period

 

        

  $ 10.46         $ 11.60         $ 10.85         $ 11.31         $ 11.06         $ 11.06  
   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

 

Net investment income(a)

      0.16         0.28         0.32         0.34         0.37         0.37  

Net realized and unrealized gain (loss)

      (0.40       (1.14       0.75         (0.46       0.25         (0.00 )(b) 
   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

 

Net increase (decrease) from investment operations

      (0.24       (0.86       1.07         (0.12       0.62         0.37  
   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

 

Distributions from net investment income(c)

      (0.16       (0.28       (0.32       (0.34       (0.37       (0.37
   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

 

Net asset value, end of period

    $ 10.06       $ 10.46       $ 11.60       $ 10.85       $ 11.31       $ 11.06  
   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

 

Total Return(d)

                       

Based on net asset value

      (2.32 )%(e)        (7.59 )%        9.96       (1.13 )%        5.79       3.43
   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

 

Ratios to Average Net Assets(f)

                       

Total expenses

      0.98 %(g)         0.94       0.93       1.02       1.05       1.02
   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

 

Total expenses after fees waived and/or reimbursed

      0.83 %(g)         0.81       0.80       0.88       0.90       0.89
   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

 

Total expenses after fees waived and/or reimbursed and excluding interest expense(h)

      0.77 %(g)         0.77       0.77       0.77       0.77       0.79
   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

 

Net investment income

      3.09 %(g)         2.45       2.81       3.01       3.39       3.35
   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

 

Supplemental Data

                       

Net assets, end of period (000)

    $ 103,699       $  112,909       $  128,040       $  106,048       $ 90,055       $ 72,565  
   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

 

Borrowings outstanding, end of period (000)

    $       $ 16,739       $ 17,972       $ 22,054       $ 16,419       $ 16,419  
   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

 

Portfolio turnover rate

      23       20       16       21       15       16
   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

 

 

(a) 

Based on average shares outstanding.

(b) 

Amount is greater than $(0.005) per share.

(c) 

Distributions for annual periods determined in accordance with U.S. federal income tax regulations.

(d) 

Where applicable, excludes the effects of any sales charges and assumes the reinvestment of distributions.

(e) 

Not annualized.

(f) 

Excludes fees and expenses incurred indirectly as a result of investments in underlying funds.

(g) 

Annualized.

(h) 

Interest expense and fees relate to TOB Trusts. See Note 4 of the Notes to Financial Statements for details.

See notes to financial statements.

 

 

78  

2 0 2 2   B L A C K R O C K   S E M I - A N N U A L   R E P O R T   T O   S H A R E H O L D E R S


Financial Highlights (continued)

(For a share outstanding throughout each period)

 

   

BlackRock New Jersey Municipal Bond Fund (continued)

 

 
   

Investor A1

 

 
   

Six Months Ended

11/30/22

(unaudited)

   

Year Ended

05/31/22

   

Year Ended

05/31/21

   

Year Ended

05/31/20

   

Year Ended

05/31/19

   

Year Ended

05/31/18

 
                         

Net asset value, beginning of period

 

            

  $ 10.47         $ 11.60         $ 10.85         $ 11.31         $ 11.06         $ 11.07  
   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

 

Net investment income(a)

      0.16         0.29         0.34         0.36         0.39         0.39  

Net realized and unrealized gain (loss)

      (0.40       (1.13       0.75         (0.46       0.25         (0.01
   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

 

Net increase (decrease) from investment operations

      (0.24       (0.84       1.09         (0.10       0.64         0.38  
   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

 

Distributions from net investment income(b)

      (0.16       (0.29       (0.34       (0.36       (0.39       (0.39
   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

 

Net asset value, end of period

    $ 10.07       $ 10.47       $ 11.60       $ 10.85       $ 11.31       $ 11.06  
   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

 

Total Return(c)

                       

Based on net asset value

      (2.24 )%(d)        (7.35 )%        10.12       (0.97 )%        5.95       3.49
   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

 

Ratios to Average Net Assets(e)

                       

Total expenses

      0.82 %(f)        0.79       0.78       0.85       0.88       0.87
   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

 

Total expenses after fees waived and/or reimbursed

      0.68 %(f)        0.66       0.65       0.73       0.74       0.74
   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

 

Total expenses after fees waived and/or reimbursed and excluding interest expense(g)

      0.62 %(f)        0.61       0.62       0.61       0.62       0.64
   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

 

Net investment income

      3.24 %(f)        2.59       2.96       3.16       3.54       3.50
   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

 

Supplemental Data

                       

Net assets, end of period (000)

    $  13,508       $ 14,636       $ 17,417       $ 17,241       $ 19,760       $ 20,534  
   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

 

Borrowings outstanding, end of period (000)

    $       $ 16,739       $ 17,972       $ 22,054       $ 16,419       $ 16,419  
   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

 

Portfolio turnover rate

      23       20       16       21       15       16
   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

 

 

(a) 

Based on average shares outstanding.

(b) 

Distributions for annual periods determined in accordance with U.S. federal income tax regulations.

(c) 

Where applicable, excludes the effects of any sales charges and assumes the reinvestment of distributions.

(d) 

Not annualized.

(e) 

Excludes fees and expenses incurred indirectly as a result of investments in underlying funds.

(f) 

Annualized.

(g) 

Interest expense and fees relate to TOB Trusts. See Note 4 of the Notes to Financial Statements for details.

See notes to financial statements.

 

 

F I N A N C I A L   H I G H L I G H T S

  79


Financial Highlights (continued)

(For a share outstanding throughout each period)

 

    BlackRock New Jersey Municipal Bond Fund (continued)  
    Investor C  
   

Six Months Ended

11/30/22

(unaudited)

   

Year Ended

05/31/22

   

Year Ended

05/31/21

   

Year Ended

05/31/20

   

Year Ended

05/31/19

   

Year Ended

05/31/18

 
                         

Net asset value, beginning of period

                   $ 10.45             $ 11.59             $ 10.84             $ 11.30             $ 11.05             $ 11.05  
   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

 

Net investment income(a)

      0.12         0.19         0.23         0.25         0.29         0.29  

Net realized and unrealized gain (loss)

      (0.40       (1.14       0.75         (0.45       0.25         0.00 (b)  
   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

 

Net increase (decrease) from investment operations

      (0.28       (0.95       0.98         (0.20       0.54         0.29  
   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

 

Distributions from net investment income(c)

      (0.12       (0.19       (0.23       (0.26       (0.29       (0.29
   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

 

Net asset value, end of period

    $ 10.05       $ 10.45       $ 11.59       $ 10.84       $ 11.30       $ 11.05  
   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

 

Total Return(d)

                       

Based on net asset value

      (2.69 )%(e)        (8.29 )%        9.14       (1.87 )%        5.00       2.65
   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

 

Ratios to Average Net Assets(f)

                       

Total expenses

      1.74 %(g)        1.70       1.68       1.76       1.79       1.78
   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

 

Total expenses after fees waived and/or reimbursed

      1.58 %(g)        1.56       1.56       1.63       1.64       1.64
   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

 

Total expenses after fees waived and/or reimbursed and excluding interest expense(h)

      1.52 %(g)        1.52       1.52       1.52       1.52       1.54
   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

 

Net investment income

      2.34 %(g)        1.68       2.06       2.26       2.64       2.60
   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

 

Supplemental Data

                       

Net assets, end of period (000)

    $  14,314       $  17,672       $  26,004       $  32,313       $  31,234       $  29,509  
   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

 

Borrowings outstanding, end of period (000)

    $       $ 16,739       $ 17,972       $ 22,054       $ 16,419       $ 16,419  
   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

 

Portfolio turnover rate

      23       20       16       21       15       16
   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

 

 

(a) 

Based on average shares outstanding.

(b) 

Amount is less than $0.005 per share.

(c) 

Distributions for annual periods determined in accordance with U.S. federal income tax regulations.

(d) 

Where applicable, excludes the effects of any sales charges and assumes the reinvestment of distributions.

(e) 

Not annualized.

(f) 

Excludes fees and expenses incurred indirectly as a result of investments in underlying funds.

(g) 

Annualized.

(h) 

Interest expense and fees relate to TOB Trusts. See Note 4 of the Notes to Financial Statements for details.

See notes to financial statements.

 

 

80  

2 0 2 2   B L A C K R O C K   S E M I - A N N U A L   R E P O R T   T O   S H A R E H O L D E R S


Financial Highlights (continued)

(For a share outstanding throughout each period)

 

    BlackRock New Jersey Municipal Bond Fund (continued)  
    Class K  
  Six Months Ended

 

          Period from

 

  11/30/22

 

  Year Ended

 

  Year Ended

 

  Year Ended

 

  Year Ended

 

      01/25/18 (a) 
  (unaudited)

 

  05/31/22

 

  05/31/21

 

  05/31/20

 

  05/31/19

 

  to 05/31/18

 

                         

Net asset value, beginning of period

 

            

  $ 10.45         $ 11.59         $ 10.83         $ 11.30         $ 11.04         $ 11.11  
   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

 

Net investment income(b)

      0.17         0.31         0.35         0.37         0.41         0.14  

Net realized and unrealized gain (loss)

      (0.40       (1.14       0.76         (0.47       0.26         (0.07
   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

 

Net increase (decrease) from investment operations

      (0.23       (0.83       1.11         (0.10       0.67         0.07  
   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

 

Distributions from net investment income(c)

      (0.17       (0.31       (0.35       (0.37       (0.41       (0.14
   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

 

Net asset value, end of period

    $ 10.05       $ 10.45       $ 11.59       $ 10.83       $ 11.30       $ 11.04  
   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

 

Total Return(d)

                       

Based on net asset value

      (2.17 )%(e)        (7.32 )%        10.39       (0.93 )%        6.20       0.66 %(e) 
   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

 

Ratios to Average Net Assets(f)

                       

Total expenses

      0.69 %(g)        0.65       0.64       0.72       0.75       0.74 %(g)(h) 
   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

 

Total expenses after fees waived and/or reimbursed

      0.53 %(g)        0.51       0.51       0.58       0.60       0.57 %(g) 
   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

 

Total expenses after fees waived and/or reimbursed and excluding interest expense(i)

      0.47 %(g)        0.47       0.47       0.47       0.47       0.47 %(g) 
   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

 

Net investment income

      3.39 %(g)        2.75       3.10       3.32       3.70       3.88 %(g) 
   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

 

Supplemental Data

                       

Net assets, end of period (000)

    $  2,166       $ 2,513       $ 2,902       $ 2,075       $ 1,660       $ 1,776  
   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

 

Borrowings outstanding, end of period (000)

    $       $  16,739       $  17,972       $  22,054       $  16,419       $  16,419  
   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

 

Portfolio turnover rate

      23       20       16       21       15       16
   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

 

 

(a) 

Commencement of operations.

(b) 

Based on average shares outstanding.

(c) 

Distributions for annual periods determined in accordance with U.S. federal income tax regulations.

(d) 

Where applicable, assumes the reinvestment of distributions.

(e) 

Not annualized.

(f) 

Excludes fees and expenses incurred indirectly as a result of investments in underlying funds.

(g) 

Annualized.

(h) 

Offering costs were not annualized in the calculation of the expense ratios. If these expenses were annualized, the total expenses would have been 0.74%.

(i) 

Interest expense and fees relate to TOB Trusts. See Note 4 of the Notes to Financial Statements for details.

See notes to financial statements.

 

 

F I N A N C I A L   H I G H L I G H T S

  81


Financial Highlights (continued)

(For a share outstanding throughout each period)

 

    BlackRock Pennsylvania Municipal Bond Fund  
    Institutional  
   

Six Months Ended

11/30/22

(unaudited)

   

Year Ended

05/31/22

   

Year Ended

05/31/21

   

Year Ended

05/31/20

   

Year Ended

05/31/19

   

Year Ended

05/31/18

 
               

Net asset value, beginning of period

 

        

   $ 10.18     $ 11.29     $ 10.75     $ 11.11     $ 10.98     $ 11.21  
    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net investment income(a)

       0.14       0.27       0.33       0.38       0.43       0.45  

Net realized and unrealized gain (loss)

       (0.49     (1.11     0.54       (0.36     0.13       (0.23
    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net increase (decrease) from investment operations

       (0.35     (0.84     0.87       0.02       0.56       0.22  
    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Distributions from net investment income(b)

       (0.14     (0.27     (0.33     (0.38     (0.43     (0.45
    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net asset value, end of period

     $ 9.69     $ 10.18     $ 11.29     $ 10.75     $ 11.11     $ 10.98  
    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total Return(c)

              

Based on net asset value

       (3.38 )%(d)      (7.56 )%      8.20     0.14     5.22     2.02
    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Ratios to Average Net Assets(e)

              

Total expenses

       0.82 %(f)       0.78     0.79     0.93     1.04     0.97
    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total expenses after fees waived and/or reimbursed

       0.61 %(f)       0.59     0.61     0.75     0.84     0.78
    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total expenses after fees waived and/or reimbursed and excluding interest expense(g)

       0.54 %(f)       0.54     0.54     0.54     0.54     0.55
    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net investment income

       2.93 %(f)       2.47     2.98     3.44     3.93     4.06
    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Supplemental Data

              

Net assets, end of period (000)

     $  263,728     $  325,614     $  403,080     $  370,399     $  379,911     $  356,315  
    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Borrowings outstanding, end of period (000)

     $     $ 29,938     $ 49,169     $ 64,784     $ 64,404     $ 70,199  
    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Portfolio turnover rate

       24     27     27     26     23     17
    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

(a) 

Based on average shares outstanding.

(b) 

Distributions for annual periods determined in accordance with U.S. federal income tax regulations.

(c) 

Where applicable, assumes the reinvestment of distributions.

(d) 

Not annualized.

(e) 

Excludes fees and expenses incurred indirectly as a result of investments in underlying funds.

(f) 

Annualized.

(g) 

Interest expense and fees relate to TOB Trusts. See Note 4 of the Notes to Financial Statements for details.

See notes to financial statements.

 

 

82  

2 0 2 2   B L A C K R O C K   S E M I - A N N U A L   R E P O R T   T O   S H A R E H O L D E R S


Financial Highlights (continued)

(For a share outstanding throughout each period)

 

    BlackRock Pennsylvania Municipal Bond Fund (continued)  
    Service  
 

Six Months Ended

11/30/22

(unaudited)

 

 

 

 

Year Ended

05/31/22

 

 

 

Year Ended

05/31/21

 

 

 

Year Ended

05/31/20

 

 

 

Year Ended

05/31/19

 

 

 

Year Ended

05/31/18

 

 

                         

Net asset value, beginning of period

    $ 10.19         $ 11.30         $ 10.76       $ 11.13       $ 10.99       $ 11.22  
   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

 

Net investment income(a)

 

          

    0.13         0.24         0.30           0.35         0.40           0.42  

Net realized and unrealized gain (loss)

      (0.49       (1.11       0.54         (0.37         0.14         (0.23
   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

 

Net increase (decrease) from investment operations

      (0.36       (0.87       0.84         (0.02       0.54         0.19  
   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

 

Distributions from net investment income(b)

      (0.13       (0.24       (0.30       (0.35       (0.40       (0.42
   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

 

Net asset value, end of period

    $ 9.70       $ 10.19       $ 11.30       $ 10.76       $ 11.13       $ 10.99  
   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

 

Total Return(c)

                       

Based on net asset value

      (3.50 )%(d)        (7.79 )%        7.93       (0.20 )%        5.05       1.76
   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

 

Ratios to Average Net Assets(e)

                       

Total expenses

      1.05 %(f)        0.98       0.97       1.14       1.26       1.19
   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

 

Total expenses after fees waived and/or reimbursed

      0.86 %(f)        0.84       0.86       1.00       1.09       1.03
   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

 

Total expenses after fees waived and/or reimbursed and excluding interest expense(g)

      0.79 %(f)        0.79       0.79       0.79       0.79       0.80
   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

 

Net investment income

      2.68 %(f)        2.21       2.72       3.19       3.67       3.81
   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

 

Supplemental Data

                       

Net assets, end of period (000)

    $ 1,036       $ 1,350       $ 2,367       $ 1,986       $ 2,080       $ 1,783  
   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

 

Borrowings outstanding, end of period (000)

    $       $  29,938       $  49,169       $  64,784       $  64,404       $  70,199  
   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

 

Portfolio turnover rate

      24       27       27       26       23       17
   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

 

 

(a) 

Based on average shares outstanding.

(b) 

Distributions for annual periods determined in accordance with U.S. federal income tax regulations.

(c) 

Where applicable, assumes the reinvestment of distributions.

(d)

Not annualized.

(e) 

Excludes fees and expenses incurred indirectly as a result of investments in underlying funds.

(f) 

Annualized.

(g) 

Interest expense and fees relate to TOB Trusts. See Note 4 of the Notes to Financial Statements for details.

See notes to financial statements.

 

 

F I N A N C I A L   H I G H L I G H T S

  83


Financial Highlights (continued)

(For a share outstanding throughout each period)

 

    BlackRock Pennsylvania Municipal Bond Fund (continued)  
    Investor A  
   

Six Months Ended

11/30/22

(unaudited)

   

Year Ended

05/31/22

   

Year Ended

05/31/21

   

Year Ended

05/31/20

   

Year Ended

05/31/19

   

Year Ended

05/31/18

 
                 

Net asset value, beginning of period

     $ 10.19     $ 11.30     $ 10.76     $ 11.13     $ 10.99         $ 11.22  
    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

     

 

 

 

Net investment income(a)

       0.13       0.25       0.30       0.35       0.40         0.42  

Net realized and unrealized gain (loss)

 

        

     (0.49     (1.11     0.54       (0.37     0.14         (0.23
    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

     

 

 

 

Net increase (decrease) from investment operations

       (0.36     (0.86     0.84       (0.02     0.54         0.19  
    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

     

 

 

 

Distributions from net investment income(b)

       (0.13     (0.25     (0.30     (0.35     (0.40       (0.42
    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

     

 

 

 

Net asset value, end of period

     $ 9.70     $ 10.19     $ 11.30     $ 10.76     $ 11.13       $ 10.99  
    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

     

 

 

 

Total Return(c)

                

Based on net asset value

       (3.50 )%(d)      (7.78 )%      7.93     (0.20 )%      5.05       1.76
    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

     

 

 

 

Ratios to Average Net Assets(e)

                

Total expenses

       0.96 %(f)       0.93     0.94     1.09     1.19       1.16
    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

     

 

 

 

Total expenses after fees waived and/or reimbursed

       0.85 %(f)       0.83     0.85     1.00     1.09       1.03
    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

     

 

 

 

Total expenses after fees waived and/or reimbursed and excluding interest expense(g)

       0.78 %(f)       0.78     0.78     0.79     0.79       0.80
    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

     

 

 

 

Net investment income

       2.69 %(f)       2.23     2.72     3.19     3.67       3.82
    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

     

 

 

 

Supplemental Data

                

Net assets, end of period (000)

     $ 123,680     $ 142,514     $ 161,081     $ 131,336     $ 110,756       $ 98,414  
    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

     

 

 

 

Borrowings outstanding, end of period (000)

     $     $ 29,938     $ 49,169     $ 64,784     $ 64,404       $  70,199  
    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

     

 

 

 

Portfolio turnover rate

       24     27     27     26     23       17
    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

     

 

 

 

 

(a) 

Based on average shares outstanding.

(b) 

Distributions for annual periods determined in accordance with U.S. federal income tax regulations.

(c) 

Where applicable, excludes the effects of any sales charges and assumes the reinvestment of distributions.

(d) 

Not annualized.

(e) 

Excludes fees and expenses incurred indirectly as a result of investments in underlying funds.

(f)

Annualized.

(g) 

Interest expense and fees relate to TOB Trusts. See Note 4 of the Notes to Financial Statements for details.

See notes to financial statements.

 

 

84  

2 0 2 2   B L A C K R O C K   S E M I - A N N U A L   R E P O R T   T O   S H A R E H O L D E R S


Financial Highlights (continued)

(For a share outstanding throughout each period)

 

    BlackRock Pennsylvania Municipal Bond Fund (continued)  
    Investor A1  
 

Six Months Ended

11/30/22

(unaudited)

 

 

 

 

Year Ended

05/31/22

 

 

 

Year Ended

05/31/21

 

 

 

Year Ended

05/31/20

 

 

 

Year Ended

05/31/19

 

 

 

Year Ended

05/31/18

 

 

                         

Net asset value, beginning of period

 

            

  $ 10.20       $ 11.30         $ 10.77       $ 11.13         $ 11.00         $ 11.22  
   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

 

Net investment income(a)

      0.14           0.26         0.32           0.37         0.42         0.44  

Net realized and unrealized gain (loss)

      (0.50       (1.10       0.53         (0.36       0.13         (0.22
   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

 

Net increase (decrease) from investment operations

      (0.36       (0.84       0.85         0.01         0.55         0.22  
   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

 

Distributions from net investment income(b)

      (0.14       (0.26       (0.32       (0.37       (0.42       (0.44
   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

 

Net asset value, end of period

    $ 9.70       $ 10.20       $ 11.30       $ 10.77       $ 11.13       $ 11.00  
   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

 

Total Return(c)

                       

Based on net asset value

      (3.52 )%(d)        (7.56 )%        7.99       0.04       5.11       2.01
   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

 

Ratios to Average Net Assets(e)

                       

Total expenses

      0.85 %(f)        0.81       0.82       0.96       1.05       0.98
   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

 

Total expenses after fees waived and/or reimbursed

      0.71 %(f)        0.69       0.71       0.85       0.94       0.88
   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

 

Total expenses after fees waived and/or reimbursed and excluding interest expense(g)

      0.64 %(f)        0.64       0.64       0.64       0.64       0.65
   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

 

Net investment income

      2.83 %(f)        2.37       2.88       3.34       3.83       3.96
   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

 

Supplemental Data

                       

Net assets, end of period (000)

    $  7,112       $ 7,651       $ 8,925       $ 9,462       $ 10,502       $ 13,763  
   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

 

Borrowings outstanding, end of period (000)

    $       $  29,938       $  49,169       $  64,784       $  64,404       $  70,199  
   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

 

Portfolio turnover rate

      24       27       27       26       23       17
   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

 

 

(a) 

Based on average shares outstanding.

(b) 

Distributions for annual periods determined in accordance with U.S. federal income tax regulations.

(c) 

Where applicable, excludes the effects of any sales charges and assumes the reinvestment of distributions.

(d) 

Not annualized.

(e) 

Excludes fees and expenses incurred indirectly as a result of investments in underlying funds.

(f) 

Annualized.

(g) 

Interest expense and fees relate to TOB Trusts. See Note 4 of the Notes to Financial Statements for details.

See notes to financial statements.

 

 

F I N A N C I A L   H I G H L I G H T S

  85


Financial Highlights (continued)

(For a share outstanding throughout each period)

 

   

BlackRock Pennsylvania Municipal Bond Fund (continued)

 

 
   

Investor C

 

 
   

Six Months Ended

11/30/22

(unaudited)

   

Year Ended

05/31/22

   

Year Ended

05/31/21

   

Year Ended

05/31/20

   

Year Ended

05/31/19

   

Year Ended

05/31/18

 
                         

Net asset value, beginning of period

 

          

  $ 10.19         $ 11.30         $ 10.76         $ 11.12         $ 10.99         $ 11.22  
   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

 

Net investment income(a)

      0.09         0.16         0.22         0.27         0.32         0.34  

Net realized and unrealized gain (loss)

      (0.48       (1.11       0.54         (0.36       0.13         (0.23
   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

 

Net increase (decrease) from investment operations

      (0.39       (0.95       0.76         (0.09       0.45         0.11  
   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

 

Distributions from net investment income(b)

      (0.10       (0.16       (0.22       (0.27       (0.32       (0.34
   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

 

Net asset value, end of period

    $ 9.70       $ 10.19       $ 11.30       $ 10.76       $ 11.12       $ 10.99  
   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

 

Total Return(c)

                       

Based on net asset value

      (3.86 )%(d)        (8.48 )%        7.12       (0.85 )%        4.18       1.01
   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

 

Ratios to Average Net Assets(e)

                       

Total expenses

      1.75 %(f)        1.70       1.71       1.85       1.95       1.87
   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

 

Total expenses after fees waived and/or reimbursed

      1.61 %(f)        1.59       1.61       1.75       1.84       1.78
   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

 

Total expenses after fees waived and/or reimbursed and excluding interest expense(g)

      1.54 %(f)        1.54       1.54       1.54       1.54       1.54
   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

 

Net investment income

      1.93 %(f)        1.47       2.00       2.44       2.93       3.06
   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

 

Supplemental Data

                       

Net assets, end of period (000)

    $ 11,412       $ 14,249       $ 20,866       $ 29,078       $ 29,936       $ 32,105  
   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

 

Borrowings outstanding, end of period (000)

    $       $ 29,938       $ 49,169       $ 64,784       $ 64,404       $ 70,199  
   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

 

Portfolio turnover rate

      24       27       27       26       23       17
   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

 

 

(a) 

Based on average shares outstanding.

(b) 

Distributions for annual periods determined in accordance with U.S. federal income tax regulations.

(c) 

Where applicable, excludes the effects of any sales charges and assumes the reinvestment of distributions.

(d) 

Not annualized.

(e) 

Excludes fees and expenses incurred indirectly as a result of investments in underlying funds.

(f) 

Annualized.

(g) 

Interest expense and fees relate to TOB Trusts. See Note 4 of the Notes to Financial Statements for details.

See notes to financial statements.

 

 

86  

2 0 2 2   B L A C K R O C K   S E M I - A N N U A L   R E P O R T   T O   S H A R E H O L D E R S


Financial Highlights (continued)

(For a share outstanding throughout each period)

 

   

BlackRock Pennsylvania Municipal Bond Fund (continued)

 

 
   

Class K

 

 
  Six Months Ended

 

                Period from

 

  11/30/22

 

  Year Ended

 

  Year Ended

 

  Year Ended

 

  Year Ended

 

      01/25/18 (a) 
  (unaudited)

 

  05/31/22

 

  05/31/21

 

  05/31/20

 

  05/31/19

 

  to 05/31/18

 

                         

Net asset value, beginning of period

 

            

  $ 10.18         $ 11.29         $ 10.75         $ 11.11         $ 10.98         $ 11.07  
   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

 

Net investment income(b)

      0.15         0.28         0.33         0.38         0.43         0.15  

Net realized and unrealized gain (loss)

      (0.49       (1.11       0.55         (0.35       0.13         (0.09
   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

 

Net increase (decrease) from investment operations

      (0.34       (0.83       0.88         0.03         0.56         0.06  
   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

 

Distributions from net investment income(c)

      (0.15       (0.28       (0.34       (0.39       (0.43       (0.15
   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

 

Net asset value, end of period

    $ 9.69       $ 10.18       $ 11.29       $ 10.75       $ 11.11       $ 10.98  
   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

 

Total Return(d)

                       

Based on net asset value

      (3.36 )%(e)        (7.52 )%        8.25       0.19       5.28       0.60 %(e) 
   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

 

Ratios to Average Net Assets(f)

                       

Total expenses

      0.67 %(g)        0.64       0.65       0.80       0.90       0.84 %(g)(h) 
   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

 

Total expenses after fees waived and/or reimbursed

      0.56 %(g)        0.54       0.56       0.70       0.79       0.72 %(g) 
   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

 

Total expenses after fees waived and/or reimbursed and excluding interest expense(i)

      0.49 %(g)        0.49       0.49       0.49       0.49       0.49 %(g) 
   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

 

Net investment income

      2.98 %(g)        2.53       3.01       3.48       3.98       4.41 %(g) 
   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

 

Supplemental Data

                       

Net assets, end of period (000)

    $ 7,645       $ 7,776       $ 6,334       $ 3,982       $ 2,329       $ 2,488  
   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

 

Borrowings outstanding, end of period (000)

    $       $ 29,938       $ 49,169       $ 64,784       $ 64,404       $ 70,199  
   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

 

Portfolio turnover rate

      24       27       27       26       23       17
   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

 

 

(a) 

Commencement of operations.

(b) 

Based on average shares outstanding.

(c) 

Distributions for annual periods determined in accordance with U.S. federal income tax regulations.

(d) 

Where applicable, assumes the reinvestment of distributions.

(e) 

Not annualized.

(f) 

Excludes fees and expenses incurred indirectly as a result of investments in underlying funds.

(g) 

Annualized.

(h) 

Offering costs were not annualized in the calculation of the expense ratios. If these expenses were annualized, the total expenses would have been 0.84%.

(i) 

Interest expense and fees relate to TOB Trusts. See Note 4 of the Notes to Financial Statements for details.

See notes to financial statements.

 

 

F I N A N C I A L   H I G H L I G H T S

  87


Financial Highlights (continued)

(For a share outstanding throughout each period)

 

   

BlackRock Impact Municipal Fund

 

 
   

Institutional

 

 
  Six Months Ended

 

  Period from

 

      11/30/22         03/14/22 (a) 
  (unaudited)

 

  to 05/31/22

 

         

Net asset value, beginning of period

    $ 9.81       $ 10.00  
   

 

 

     

 

 

 

Net investment income(b)

      0.14         0.03  

Net realized and unrealized loss

      (0.37       (0.19
   

 

 

     

 

 

 

Net decrease from investment operations

      (0.23       (0.16
   

 

 

     

 

 

 

Distributions from net investment income(c)

      (0.14       (0.03
   

 

 

     

 

 

 

Net asset value, end of period

    $ 9.44       $ 9.81  
   

 

 

     

 

 

 

Total Return(d)

       

Based on net asset value

                 (2.30 )%(e)        (1.61 )%(e) 
   

 

 

     

 

 

 

Ratios to Average Net Assets(f)

       

Total expenses

      1.07 %(g)(h)        1.13 %(g)(i)(j) 
   

 

 

     

 

 

 

Total expenses after fees waived and/or reimbursed

      0.56 %(g)        0.58 %(g) 
   

 

 

     

 

 

 

Net investment income

      2.99 %(g)        1.44 %(g) 
   

 

 

     

 

 

 

Supplemental Data

       

Net assets, end of period (000)

    $ 117       $ 98  
   

 

 

     

 

 

 

Portfolio turnover rate

      18      
   

 

 

     

 

 

 

 

(a) 

Commencement of operations.

(b) 

Based on average shares outstanding.

(c) 

Distributions for annual periods determined in accordance with U.S. federal income tax regulations.

(d) 

Where applicable, assumes the reinvestment of distributions.

(e) 

Not annualized.

(f) 

Excludes fees and expenses incurred indirectly as a result of investments in underlying funds.

(g) 

Annualized.

(h) 

Offering costs were not annualized in the calculation of the expense ratios. If these expenses were annualized, the total expenses would have been 1.27%.

(i) 

Includes non-recurring expenses of organization and offering costs. Without these costs, total expenses would have been 1.05%.

(j) 

Audit, printing, offering and organization costs were not annualized in the calculation of the expense ratios. If these expenses were annualized, the total expenses would have been 1.77%.

See notes to financial statements.

 

 

88  

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Financial Highlights (continued)

(For a share outstanding throughout each period)

 

        BlackRock Impact Municipal Fund (continued)  
   

Investor A

 

 
  Six Months Ended

 

  Period from

 

      11/30/22         03/14/22 (a) 
    (unaudited)     to 05/31/22  
         

Net asset value, beginning of period

    $ 9.81       $ 10.00  
   

 

 

     

 

 

 

Net investment income(b)

      0.13         0.02  

Net realized and unrealized loss

      (0.37       (0.19
   

 

 

     

 

 

 

Net decrease from investment operations

      (0.24       (0.17
   

 

 

     

 

 

 

Distributions from net investment income(c)

      (0.13       (0.02
   

 

 

     

 

 

 

Net asset value, end of period

    $ 9.44       $ 9.81  
   

 

 

     

 

 

 

Total Return(d)

       

Based on net asset value

                     (2.43 )%(e)        (1.66 )%(e) 
   

 

 

     

 

 

 

Ratios to Average Net Assets(f)

       

Total expenses

      1.34 %(g)(h)        1.37 %(g)(i)(j) 
   

 

 

     

 

 

 

Total expenses after fees waived and/or reimbursed

      0.81 %(g)        0.83 %(g) 
   

 

 

     

 

 

 

Net investment income

      2.73 %(g)        1.19 %(g) 
   

 

 

     

 

 

 

Supplemental Data

       

Net assets, end of period (000)

    $ 94       $ 98  
   

 

 

     

 

 

 

Portfolio turnover rate

      18      
   

 

 

     

 

 

 

 

(a) 

Commencement of operations.

(b) 

Based on average shares outstanding.

(c) 

Distributions for annual periods determined in accordance with U.S. federal income tax regulations.

(d) 

Where applicable, excludes the effects of any sales charges and assumes the reinvestment of distributions.

(e) 

Not annualized.

(f) 

Excludes fees and expenses incurred indirectly as a result of investments in underlying funds.

(g) 

Annualized.

(h) 

Offering costs were not annualized in the calculation of the expense ratios. If these expenses were annualized, the total expenses would have been 1.53%.

(i) 

Includes non-recurring expenses of organization and offering costs. Without these costs, total expenses would have been 1.30%.

(j) 

Audit, printing, offering and organization costs were not annualized in the calculation of the expense ratios. If these expenses were annualized, the total expenses would have been 2.02%.

See notes to financial statements.

 

 

F I N A N C I A L   H I G H L I G H T S

  89


Financial Highlights (continued)

(For a share outstanding throughout each period)

 

   

    BlackRock Impact Municipal Fund (continued)

 

 
   

Class K

 

 
  Six Months Ended

 

  Period from

 

      11/30/22         03/14/22 (a) 
    (unaudited)     to 05/31/22  
         

Net asset value, beginning of period

                     $ 9.81       $ 10.00  
   

 

 

     

 

 

 

Net investment income(b)

      0.14         0.03  

Net realized and unrealized loss

      (0.37       (0.19
   

 

 

     

 

 

 

Net decrease from investment operations

      (0.23       (0.16
   

 

 

     

 

 

 

Distributions from net investment income(c)

      (0.14       (0.03
   

 

 

     

 

 

 

Net asset value, end of period

    $ 9.44       $ 9.81  
   

 

 

     

 

 

 

Total Return(d)

       

Based on net asset value

      (2.29 )%(e)        (1.60 )%(e) 
   

 

 

     

 

 

 

Ratios to Average Net Assets(f)

       

Total expenses

      0.96 %(g)(h)        0.75 %(g)(i)(j) 
   

 

 

     

 

 

 

Total expenses after fees waived and/or reimbursed

      0.53 %(g)        0.53 %(g) 
   

 

 

     

 

 

 

Net investment income

      3.02 %(g)        1.50 %(g) 
   

 

 

     

 

 

 

Supplemental Data

       

Net assets, end of period (000)

    $ 47,030       $ 48,841  
   

 

 

     

 

 

 

Portfolio turnover rate

      18      
   

 

 

     

 

 

 

 

(a) 

Commencement of operations.

(b) 

Based on average shares outstanding.

(c) 

Distributions for annual periods determined in accordance with U.S. federal income tax regulations.

(d) 

Where applicable, assumes the reinvestment of distributions.

(e) 

Not annualized.

(f) 

Excludes fees and expenses incurred indirectly as a result of investments in underlying funds.

(g) 

Annualized.

(h) 

Offering costs were not annualized in the calculation of the expense ratios. If these expenses were annualized, the total expenses would have been 1.15%.

(i) 

Includes non-recurring expenses of organization and offering costs. Without these costs, total expenses would have been 0.68%.

(j) 

Audit, printing, offering and organization costs were not annualized in the calculation of the expense ratios. If these expenses were annualized, the total expenses would have been 1.40%.

See notes to financial statements.

 

 

90  

2 0 2 2   B L A C K R O C K   S E M I - A N N U A L   R E P O R T   T O   S H A R E H O L D E R S


Financial Highlights (continued)

(For a share outstanding throughout each period)

 

    BlackRock Strategic Municipal Opportunities Fund  
    Institutional  
    

Six Months Ended

11/30/22

(unaudited)

   

Year Ended

05/31/22

   

Year Ended

05/31/21

   

Year Ended

05/31/20

   

Year Ended

05/31/19

   

Year Ended

05/31/18

 

Net asset value, beginning of period

    $ 10.84     $ 11.95     $ 10.90     $ 11.70     $ 11.75     $ 11.57  
   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net investment income(a)

                 0.14       0.25       0.27       0.29       0.35       0.33  

Net realized and unrealized gain (loss)

      (0.53     (1.11     1.04       (0.80     0.14       0.18  
   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net increase (decrease) from investment operations

      (0.39     (0.86     1.31       (0.51     0.49       0.51  
   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Distributions(b)

             

From net investment income

      (0.14     (0.25     (0.26     (0.29     (0.35     (0.33

From net realized gain

                              (0.19      
   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total distributions

      (0.14     (0.25     (0.26     (0.29     (0.54     (0.33
   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net asset value, end of period

    $ 10.31     $ 10.84     $ 11.95     $ 10.90     $ 11.70     $ 11.75  
   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total Return(c)

             

Based on net asset value

      (3.60 )%(d)       (7.34 )%      12.18     (4.46 )%      4.41     4.47
   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Ratios to Average Net Assets(e)

             

Total expenses

      0.84 %(f)       0.67     0.67     0.75     0.82     0.81
   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total expenses after fees waived and/or reimbursed

      0.79 %(f)       0.63     0.61     0.70     0.77     0.75
   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total expenses after fees waived and/or reimbursed and excluding interest expense(g)

      0.58 %(f)       0.55     0.55     0.54     0.55     0.57
   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net investment income

      2.70 %(f)       2.10     2.32     2.53     3.05     2.83
   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Supplemental Data

             

Net assets, end of period (000)

    $  4,510,052     $  5,736,839     $  6,514,428     $  6,827,755     $  8,539,776     $  5,791,442  
   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Borrowings outstanding, end of period (000)

    $ 545,680     $ 745,620     $ 764,712     $ 869,463     $ 960,205     $ 767,480  
   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Portfolio turnover rate

      18     106     100     119     68     145
   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

(a) 

Based on average shares outstanding.

(b) 

Distributions for annual periods determined in accordance with U.S. federal income tax regulations.

(c) 

Where applicable, assumes the reinvestment of distributions.

(d) 

Not annualized.

(e) 

Excludes fees and expenses incurred indirectly as a result of investments in underlying funds.

(f) 

Annualized.

(g) 

Interest expense and fees relate to TOB Trusts. See Note 4 of the Notes to Financial Statements for details.

See notes to financial statements.

 

 

F I N A N C I A L   H I G H L I G H T S

  91


Financial Highlights (continued)

(For a share outstanding throughout each period)

 

    BlackRock Strategic Municipal Opportunities Fund (continued)  
    Investor A  
    

Six Months Ended

11/30/22
(unaudited)

    Year Ended
05/31/22
    Year Ended
05/31/21
    Year Ended
05/31/20
    Year Ended
05/31/19
    Year Ended
05/31/18
 

Net asset value, beginning of period

    $ 10.83     $ 11.94     $ 10.90     $ 11.69     $ 11.74     $ 11.56  
   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net investment income(a)

      0.13       0.22       0.24       0.27       0.33       0.31  

Net realized and unrealized gain (loss)

                 (0.53     (1.11     1.04       (0.79     0.14       0.18  
   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net increase (decrease) from investment operations

      (0.40     (0.89     1.28       (0.52     0.47       0.49  
   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Distributions(b)

             

From net investment income

      (0.13     (0.22     (0.24     (0.27     (0.33     (0.31

From net realized gain

                              (0.19      
   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total distributions

      (0.13     (0.22     (0.24     (0.27     (0.52     (0.31
   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net asset value, end of period

    $ 10.30     $ 10.83     $ 11.94     $ 10.90     $ 11.69     $ 11.74  
   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total Return(c)

             

Based on net asset value

      (3.71 )%(d)       (7.55 )%      11.83     (4.59 )%      4.17     4.26
   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Ratios to Average Net Assets(e)

             

Total expenses

      1.05 %(f)       0.89     0.89     0.98     1.05     1.02
   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total expenses after fees waived and/or reimbursed

      1.00 %(f)       0.85     0.84     0.92     1.00     0.96
   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total expenses after fees waived and/or reimbursed and excluding interest expense(g)

      0.79 %(f)       0.77     0.77     0.76     0.78     0.78
   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net investment income

      2.49 %(f)       1.88     2.10     2.31     2.82     2.63
   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Supplemental Data

             

Net assets, end of period (000)

    $  1,116,019     $  1,367,516     $  1,717,910     $  1,871,557     $  1,846,094     $  1,441,879  
   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Borrowings outstanding, end of period (000)

    $ 545,680     $ 745,620     $ 764,712     $ 869,463     $ 960,205     $ 767,480  
   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Portfolio turnover rate

      18     106     100     119     68     145
   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

(a) 

Based on average shares outstanding.

(b) 

Distributions for annual periods determined in accordance with U.S. federal income tax regulations.

(c) 

Where applicable, excludes the effects of any sales charges and assumes the reinvestment of distributions.

(d) 

Not annualized.

(e) 

Excludes fees and expenses incurred indirectly as a result of investments in underlying funds.

(f) 

Annualized.

(g) 

Interest expense and fees relate to TOB Trusts. See Note 4 of the Notes to Financial Statements for details.

See notes to financial statements.

 

 

92  

2 0 2 2   B L A C K R O C K   S E M I - A N N U A L   R E P O R T   T O   S H A R E H O L D E R S


Financial Highlights (continued)

(For a share outstanding throughout each period)

 

    BlackRock Strategic Municipal Opportunities Fund (continued)  
    Investor A1  
    

Six Months Ended

11/30/22
(unaudited)

    Year Ended
05/31/22
    Year Ended
05/31/21
    Year Ended
05/31/20
    Year Ended
05/31/19
    Year Ended
05/31/18
 

Net asset value, beginning of period

               $ 10.83     $ 11.94     $ 10.90     $ 11.70     $ 11.75     $ 11.56  
   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net investment income(a)

      0.14       0.24       0.26       0.29       0.35       0.32  

Net realized and unrealized gain (loss)

      (0.52     (1.11     1.03       (0.81     0.14       0.19  
   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net increase (decrease) from investment operations

      (0.38     (0.87     1.29       (0.52     0.49       0.51  
   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Distributions(b)

             

From net investment income

      (0.14     (0.24     (0.25     (0.28     (0.35     (0.32

From net realized gain

                              (0.19      
   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total distributions

      (0.14     (0.24     (0.25     (0.28     (0.54     (0.32
   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net asset value, end of period

    $ 10.31     $ 10.83     $ 11.94     $ 10.90     $ 11.70     $ 11.75  
   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total Return(c)

             

Based on net asset value

      (3.55 )%(d)      (7.42 )%      11.99     (4.52 )%      4.33     4.49
   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Ratios to Average Net Assets(e)

             

Total expenses

      0.91 %(f)       0.74     0.75     0.82     0.90     0.88
   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total expenses after fees waived and/or reimbursed

      0.86 %(f)       0.71     0.69     0.76     0.84     0.83
   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total expenses after fees waived and/or reimbursed and excluding interest expense(g)

      0.65 %(f)       0.63     0.63     0.60     0.62     0.64
   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net investment income

      2.64 %(f)       2.03     2.25     2.48     2.99     2.77
   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Supplemental Data

             

Net assets, end of period (000)

    $ 17,180     $ 21,176     $ 24,645     $ 23,881     $ 27,606     $ 29,233  
   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Borrowings outstanding, end of period (000)

    $  545,680     $  745,620     $  764,712     $  869,463     $  960,205     $  767,480  
   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Portfolio turnover rate

      18     106     100     119     68     145
   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

(a) 

Based on average shares outstanding.

(b) 

Distributions for annual periods determined in accordance with U.S. federal income tax regulations.

(c) 

Where applicable, excludes the effects of any sales charges and assumes the reinvestment of distributions.

(d) 

Not annualized.

(e) 

Excludes fees and expenses incurred indirectly as a result of investments in underlying funds.

(f) 

Annualized.

(g) 

Interest expense and fees relate to TOB Trusts. See Note 4 of the Notes to Financial Statements for details.

See notes to financial statements.

 

 

F I N A N C I A L   H I G H L I G H T S

  93


Financial Highlights (continued)

(For a share outstanding throughout each period)

 

    BlackRock Strategic Municipal Opportunities Fund (continued)  
    Investor C  
    

Six Months Ended

11/30/22

(unaudited)

   

Year Ended

05/31/22

   

Year Ended

05/31/21

   

Year Ended

05/31/20

   

Year Ended

05/31/19

   

Year Ended

05/31/18

 
               

Net asset value, beginning of period

 

        

  $ 10.84     $ 11.95     $ 10.90     $ 11.70     $ 11.75     $ 11.56  
   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net investment income(a)

      0.09       0.13       0.15       0.18       0.24       0.22  

Net realized and unrealized gain (loss)

      (0.53     (1.11     1.05       (0.80     0.14       0.19  
   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net increase (decrease) from investment operations

      (0.44     (0.98     1.20       (0.62     0.38       0.41  
   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Distributions(b)

             

From net investment income

      (0.09     (0.13     (0.15     (0.18     (0.24     (0.22

From net realized gain

                              (0.19      
   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total distributions

      (0.09     (0.13     (0.15     (0.18     (0.43     (0.22
   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net asset value, end of period

    $ 10.31     $ 10.84     $ 11.95     $ 10.90     $ 11.70     $ 11.75  
   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total Return(c)

 

  

           

Based on net asset value

      (4.08 )%(d)      (8.25 )%      11.07     (5.39 )%      3.39     3.54
   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Ratios to Average Net Assets(e)

             

Total expenses

      1.82 %(f)       1.65     1.66     1.73     1.81     1.79
   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total expenses after fees waived and/or reimbursed

      1.77 %(f)       1.61     1.61     1.68     1.75     1.73
   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total expenses after fees waived and/or reimbursed and excluding interest expense(g)

      1.56 %(f)       1.53     1.54     1.52     1.53     1.55
   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net investment income

      1.72 %(f)       1.11     1.35     1.56     2.07     1.86
   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Supplemental Data

             

Net assets, end of period (000)

    $ 96,698     $ 134,639     $ 184,220     $ 271,382     $ 307,887     $ 269,156  
   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Borrowings outstanding, end of period (000)

    $ 545,680     $ 745,620     $ 764,712     $ 869,463     $ 960,205     $ 767,480  
   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Portfolio turnover rate

      18     106     100     119     68     145
   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

(a) 

Based on average shares outstanding.

(b) 

Distributions for annual periods determined in accordance with U.S. federal income tax regulations.

(c) 

Where applicable, excludes the effects of any sales charges and assumes the reinvestment of distributions.

(d) 

Not annualized.

(e) 

Excludes fees and expenses incurred indirectly as a result of investments in underlying funds.

(f) 

Annualized.

(g) 

Interest expense and fees relate to TOB Trusts. See Note 4 of the Notes to Financial Statements for details.

See notes to financial statements.

 

 

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Financial Highlights (continued)

(For a share outstanding throughout each period)

 

    BlackRock Strategic Municipal Opportunities Fund (continued)  
    Class K  
   

Six Months Ended

11/30/22

(unaudited)

 

 

 

   

Year Ended

05/31/22

 

 

   

Year Ended

05/31/21

 

 

   

Year Ended

05/31/20

 

 

   

Year Ended

05/31/19

 

 

   

Period from

01/25/18

to 05/31/18

 

(a) 

 

               

Net asset value, beginning of period

    $ 10.84     $ 11.95     $ 10.90     $ 11.70     $ 11.75     $ 11.73  
   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net investment income(b)

 

        

    0.15       0.25       0.27       0.30       0.36       0.11  

Net realized and unrealized gain (loss)

      (0.54     (1.11     1.05       (0.80     0.14       0.02  
   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net increase (decrease) from investment operations

      (0.39     (0.86     1.32       (0.50     0.50       0.13  
   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Distributions(c)

             

From net investment income

      (0.14     (0.25     (0.27     (0.30     (0.36     (0.11

From net realized gain

                              (0.19      
   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total distributions

      (0.14     (0.25     (0.27     (0.30     (0.55     (0.11
   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net asset value, end of period

    $ 10.31     $ 10.84     $ 11.95     $ 10.90     $ 11.70     $ 11.75  
   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total Return(d)

             

Based on net asset value

      (3.57 )%(e)      (7.28 )%      12.24     (4.39 )%      4.47     1.16 %(e)  
   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Ratios to Average Net Assets(f)

             

Total expenses

      0.76 %(g)       0.60     0.61     0.69     0.76     0.74 %(g)(h) 
   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total expenses after fees waived and/or reimbursed

      0.71 %(g)       0.56     0.56     0.63     0.71     0.68 %(g)  
   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total expenses after fees waived and/or reimbursed and excluding interest expense(i)

      0.50 %(g)       0.48     0.49     0.47     0.48     0.50 %(g)  
   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net investment income

      2.78 %(g)       2.16     2.37     2.59     3.11     3.20 %(g)  
   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Supplemental Data

             

Net assets, end of period (000)

    $ 115,785     $ 124,194     $ 168,801     $ 162,366     $ 126,051     $ 63,971  
   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Borrowings outstanding, end of period (000)

    $ 545,680     $ 745,620     $ 764,712     $ 869,463     $ 960,205     $ 767,480  
   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Portfolio turnover rate

      18     106     100     119     68     145
   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

(a) 

Commencement of operations.

(b) 

Based on average shares outstanding.

(c) 

Distributions for annual periods determined in accordance with U.S. federal income tax regulations.

(d) 

Where applicable, assumes the reinvestment of distributions.

(e) 

Not annualized.

(f) 

Excludes fees and expenses incurred indirectly as a result of investments in underlying funds.

(g) 

Annualized.

(h) 

Offering costs were not annualized in the calculation of the expense ratios. If these expenses were annualized, the total expenses would have been 0.74%.

(i) 

Interest expense and fees relate to TOB Trusts. See Note 4 of the Notes to Financial Statements for details.

See notes to financial statements.

 

 

F I N A N C I A L   H I G H L I G H T S

  95


Notes to Financial Statements  (unaudited)  

 

1.

ORGANIZATION

BlackRock California Municipal Series Trust, BlackRock Multi-State Municipal Series Trust, BlackRock Municipal Series Trust (each, a “Trust” or collectively, the “Trusts”) and BlackRock Municipal Bond Fund, Inc. (the “Corporation”) are each registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as open-end management investment companies. Each Trust is organized as a Massachusetts business trust. The Corporation is organized as a Maryland corporation. The following are referred to herein collectively as the “Funds” or individually as a “Fund”:

 

       
Registrant Name   Fund Name   Herein Referred To As    Diversification
Classification

BlackRock California Municipal Series Trust

  BlackRock California Municipal Opportunities Fund   California Municipal Opportunities    Diversified

BlackRock Multi-State Municipal Series Trust

  BlackRock New Jersey Municipal Bond Fund   New Jersey Municipal Bond    Non-diversified
  BlackRock Pennsylvania Municipal Bond Fund   Pennsylvania Municipal Bond    Non-diversified

BlackRock Municipal Bond Fund, Inc.

  BlackRock Impact Municipal Fund   Impact Municipal    Diversified

BlackRock Municipal Series Trust

  BlackRock Strategic Municipal Opportunities Fund   Strategic Municipal Opportunities    Diversified

Each Fund offers multiple classes of shares. All classes of shares have identical voting, dividend, liquidation and other rights and are subject to the same terms and conditions, except that certain classes bear expenses related to the shareholder servicing and distribution of such shares. Institutional, Service and Class K Shares are sold only to certain eligible investors. Service, Investor A, Investor A1 and Investor C Shares bear certain expenses related to shareholder servicing of such shares, and Investor C Shares also bear certain expenses related to the distribution of such shares. Investor A and Investor C Shares are generally available through financial intermediaries. Investor A1 Shares are only available for dividend and capital gain reinvestment by existing shareholders, and for purchase by certain employer-sponsored retirement plans and, for California Municipal Opportunities only, fee based programs previously approved by the Fund. Each class has exclusive voting rights with respect to matters relating to its shareholder servicing and distribution expenditures (except that Investor C shareholders may vote on material changes to the Investor A Shares distribution and service plan).

 

       
Share Class   Initial Sales Charge      CDSC     Conversion Privilege

Institutional, Service and Class K Shares

    No        No     None

Investor A Shares

    Yes        No (a)    None

Investor A1 Shares

    No (b)       No (c)    None

Investor C Shares

    No        Yes (d)    To Investor A Shares after approximately 8 years

 

  (a) 

Investor A Shares may be subject to a contingent deferred sales charge (“CDSC”) for certain redemptions where no initial sales charge was paid at the time of purchase.

 
  (b) 

Investor A1 Shares are subject to a maximum sales charge on purchases of 4.00% for all Funds other than Strategic Municipal Opportunities, which is subject to a maximum sales charge of 1.00%. The sales charge does not apply to dividend and capital gain reinvestments by existing shareholders and new purchases for certain employer-sponsored retirement plans or, for California Municipal Opportunities only, fee based programs previously approved by the Fund, which are currently the only investors who may invest in Investor A1 Shares.

 
  (c) 

Investor A1 Shares may be subject to CDSC for certain redemptions where no initial sales charge was paid at the time of purchase. However, the CDSC does not apply to redemptions by certain employer-sponsored retirement plans or to redemptions of shares acquired through reinvestment of dividends and capital gains by existing shareholders and, for California Municipal Opportunities only, fee based programs previously approved by the Fund.

 
  (d) 

A CDSC of 1.00% is assessed on certain redemptions of Investor C Shares made within one year after purchase.

 

The Boards of Trustees of the Trusts and the Board of Directors of the Corporation are collectively referred to throughout this report as the “Board,” and the directors/trustees thereof are collectively referred to throughout this report as “Trustees”.

The Funds, together with certain other registered investment companies advised by BlackRock Advisors, LLC (the “Manager”) or its affiliates, are included in a complex of funds referred to as the BlackRock Fixed-Income Complex.

 

2.

SIGNIFICANT ACCOUNTING POLICIES

The financial statements are prepared in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”), which may require management to make estimates and assumptions that affect the reported amounts of assets and liabilities in the financial statements, disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of increases and decreases in net assets from operations during the reporting period. Actual results could differ from those estimates. Each Fund is considered an investment company under U.S. GAAP and follows the accounting and reporting guidance applicable to investment companies. Below is a summary of significant accounting policies:

Investment Transactions and Income Recognition: For financial reporting purposes, investment transactions are recorded on the dates the transactions are executed. Realized gains and losses on investment transactions are determined using the specific identification method. Dividend income and capital gain distributions, if any, are recorded on the ex-dividend dates. Non-cash dividends, if any, are recorded on the ex-dividend dates at fair value. Interest income, including amortization and accretion of premiums and discounts on debt securities, is recognized daily on an accrual basis. Income, expenses and realized and unrealized gains and losses are allocated daily to each class based on its relative net assets.

Collateralization: If required by an exchange or counterparty agreement, the Funds may be required to deliver/deposit cash and/or securities to/with an exchange, or broker-dealer or custodian as collateral for certain investments.

Distributions: Distributions from net investment income are declared daily and paid monthly. Distributions of capital gains are recorded on the ex-dividend dates and made at least annually. The character and timing of distributions are determined in accordance with U.S. federal income tax regulations, which may differ from U.S. GAAP.

Deferred Compensation Plan: Under the Deferred Compensation Plan (the “Plan”) approved by each Fund’s Board, the trustees who are not “interested persons” of the Funds, as defined in the 1940 Act (“Independent Trustees”), may defer a portion of their annual complex-wide compensation. Deferred amounts earn an approximate return as

 

 

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Notes to Financial Statements  (unaudited)  (continued)

 

though equivalent dollar amounts had been invested in common shares of certain funds in the BlackRock Fixed-Income Complex selected by the Independent Trustees. This has the same economic effect for the Independent Trustees as if the Independent Trustees had invested the deferred amounts directly in certain funds in the BlackRock Fixed-Income Complex.

The Plan is not funded and obligations thereunder represent general unsecured claims against the general assets of each Fund, as applicable. Deferred compensation liabilities, if any, are included in the Trustees’ and Officer’s fees payable in the Statements of Assets and Liabilities and will remain as a liability of the Funds until such amounts are distributed in accordance with the Plan. Net appreciation (depreciation) in the value of participants’ deferral accounts is allocated among the participating funds in the BlackRock Fixed-Income Complex and reflected as Trustees and Officer expense on the Statements of Operations. The Trustees and Officer expense may be negative as a result of a decrease in value of the deferred accounts.

Offering Costs: Offering costs are amortized over a 12-month period beginning with the commencement of operations of a class of shares.

Indemnifications: In the normal course of business, a Fund enters into contracts that contain a variety of representations that provide general indemnification. A Fund’s maximum exposure under these arrangements is unknown because it involves future potential claims against a Fund, which cannot be predicted with any certainty.

Other: Expenses directly related to a Fund or its classes are charged to that Fund or the applicable class. Expenses directly related to the Funds and other shared expenses prorated to the Funds are allocated daily to each class based on their relative net assets or other appropriate methods. Other operating expenses shared by several funds, including other funds managed by the Manager, are prorated among those funds on the basis of relative net assets or other appropriate methods.

 

3.

INVESTMENT VALUATION AND FAIR VALUE MEASUREMENTS

Investment Valuation Policies: Each Fund’s investments are valued at fair value (also referred to as “market value” within the financial statements) each day that the Fund is open for business and, for financial reporting purposes, as of the report date. U.S. GAAP defines fair value as the price a fund would receive to sell an asset or pay to transfer a liability in an orderly transaction between market participants at the measurement date. The Board has approved the designation of each Fund’s Manager as the valuation designee for each Fund. Each Fund determines the fair values of its financial instruments using various independent dealers or pricing services under the Manager’s policies. If a security’s market price is not readily available or does not otherwise accurately represent the fair value of the security, the security will be valued in accordance with the Manager’s policies and procedures as reflecting fair value. The Manager has formed a committee (the “Valuation Committee”) to develop pricing policies and procedures and to oversee the pricing function for all financial instruments, with assistance from other BlackRock pricing committees.

Fair Value Inputs and Methodologies: The following methods and inputs are used to establish the fair value of each Fund’s assets and liabilities:

 

   

Fixed-income investments for which market quotations are readily available are generally valued using the last available bid price or current market quotations provided by independent dealers or third-party pricing services. Pricing services generally value fixed-income securities assuming orderly transactions of an institutional round lot size, but a fund may hold or transact in such securities in smaller, odd lot sizes. Odd lots may trade at lower prices than institutional round lots. The pricing services may use matrix pricing or valuation models that utilize certain inputs and assumptions to derive values, including transaction data (e.g., recent representative bids and offers), market data, credit quality information, perceived market movements, news, and other relevant information. Certain fixed-income securities, including asset-backed and mortgage related securities may be valued based on valuation models that consider the estimated cash flows of each tranche of the entity, establish a benchmark yield and develop an estimated tranche specific spread to the benchmark yield based on the unique attributes of the tranche. The amortized cost method of valuation may be used with respect to debt obligations with sixty days or less remaining to maturity unless the Manager determines such method does not represent fair value.

 

   

Investments in open-end U.S. mutual funds (including money market funds) are valued at that day’s published net asset value (“NAV”).

 

   

Futures contracts are valued based on that day’s last reported settlement or trade price on the exchange where the contract is traded.

If events (e.g., market volatility, company announcement or a natural disaster) occur that are expected to materially affect the value of such investment, or in the event that application of these methods of valuation results in a price for an investment that is deemed not to be representative of the market value of such investment, or if a price is not available, the investment will be valued by the Valuation Committee in accordance with the Manager’s policies and procedures as reflecting fair value (“Fair Valued Investments”). The fair valuation approaches that may be used by the Valuation Committee include market approach, income approach and cost approach. Valuation techniques such as discounted cash flow, use of market comparables and matrix pricing are types of valuation approaches and are typically used in determining fair value. When determining the price for Fair Valued Investments, the Valuation Committee seeks to determine the price that each Fund might reasonably expect to receive or pay from the current sale or purchase of that asset or liability in an arm’s-length transaction. Fair value determinations shall be based upon all available factors that the Valuation Committee deems relevant and consistent with the principles of fair value measurement.

For investments in equity or debt issued by privately held companies or funds (“Private Company” or collectively, the “Private Companies”) and other Fair Valued Investments, the fair valuation approaches that are used by the Valuation Committee and third-party pricing services utilized by the Valuation Committee include one or a combination of, but not limited to, the following inputs.

 

   
     Standard Inputs Generally Considered By The Valuation Committee And Third-Party Pricing Services

Market approach

 

(i)  recent market transactions, including subsequent rounds of financing, in the underlying investment or comparable issuers;

 

(ii) recapitalizations and other transactions across the capital structure; and

   

(iii)   market multiples of comparable issuers.

Income approach

 

(i)  future cash flows discounted to present and adjusted as appropriate for liquidity, credit, and/or market risks;

   

(ii) quoted prices for similar investments or assets in active markets; and

 

 

N O T E S   T O   F I N A N C I A L   S T A T E M E N T S

  97


Notes to Financial Statements  (unaudited)  (continued)

 

   
    

Standard Inputs Generally Considered By The Valuation Committee And Third-Party Pricing Services

   

(iii)   other risk factors, such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks, recovery rates, liquidation amounts and/or default rates.

Cost approach

 

(i)  audited or unaudited financial statements, investor communications and financial or operational metrics issued by the Private Company;

 

(ii) changes in the valuation of relevant indices or publicly traded companies comparable to the Private Company;

 

(iii)   relevant news and other public sources; and

   

(iv)   known secondary market transactions in the Private Company’s interests and merger or acquisition activity in companies comparable to the Private Company.

Investments in series of preferred stock issued by Private Companies are typically valued utilizing market approach in determining the enterprise value of the company. Such investments often contain rights and preferences that differ from other series of preferred and common stock of the same issuer. Enterprise valuation techniques such as an option pricing model (“OPM”), a probability weighted expected return model (“PWERM”), current value method or a hybrid of those techniques are used as deemed appropriate under the circumstances. The use of these valuation techniques involve a determination of the exit scenarios of the investment in order to appropriately allocate the enterprise value of the company among the various parts of its capital structure.

The Private Companies are not subject to the public company disclosure, timing, and reporting standards applicable to other investments held by a Fund. Typically, the most recently available information by a Private Company is as of a date that is earlier than the date a Fund is calculating its NAV. This factor may result in a difference between the value of the investment and the price a Fund could receive upon the sale of the investment.

Fair Value Hierarchy: Various inputs are used in determining the fair value of financial instruments. These inputs to valuation techniques are categorized into a fair value hierarchy consisting of three broad levels for financial reporting purposes as follows:

 

   

Level 1 – Unadjusted price quotations in active markets/exchanges for identical assets or liabilities that each Fund has the ability to access;

 

   

Level 2 – Other observable inputs (including, but not limited to, quoted prices for similar assets or liabilities in markets that are active, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the assets or liabilities (such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and default rates) or other market–corroborated inputs); and

 

   

Level 3 – Unobservable inputs based on the best information available in the circumstances, to the extent observable inputs are not available (including the BlackRock Valuation Committee’s assumptions used in determining the fair value of financial instruments).

The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). Accordingly, the degree of judgment exercised in determining fair value is greatest for instruments categorized in Level 3. The inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes, the fair value hierarchy classification is determined based on the lowest level input that is significant to the fair value measurement in its entirety. Investments classified within Level 3 have significant unobservable inputs used by the Valuation Committee in determining the price for Fair Valued Investments. Level 3 investments include equity or debt issued by Private Companies that may not have a secondary market and/or may have a limited number of investors. The categorization of a value determined for financial instruments is based on the pricing transparency of the financial instruments and is not necessarily an indication of the risks associated with investing in those securities.

 

4.

SECURITIES AND OTHER INVESTMENTS

Zero-Coupon Bonds: Zero-coupon bonds are normally issued at a significant discount from face value and do not provide for periodic interest payments. These bonds may experience greater volatility in market value than other debt obligations of similar maturity which provide for regular interest payments.

Forward Commitments, When-Issued and Delayed Delivery Securities: The Funds may purchase securities on a when-issued basis and may purchase or sell securities on a forward commitment basis. Settlement of such transactions normally occurs within a month or more after the purchase or sale commitment is made. The Funds may purchase securities under such conditions with the intention of actually acquiring them but may enter into a separate agreement to sell the securities before the settlement date. Since the value of securities purchased may fluctuate prior to settlement, the Funds may be required to pay more at settlement than the security is worth. In addition, a fund is not entitled to any of the interest earned prior to settlement. When purchasing a security on a delayed delivery basis, the Funds assume the rights and risks of ownership of the security, including the risk of price and yield fluctuations. In the event of default by the counterparty, the Funds’ maximum amount of loss is the unrealized appreciation of unsettled when-issued transactions.

Municipal Bonds Transferred to TOB Trusts: The Funds leverage their assets through the use of “TOB Trust” transactions. The funds transfer municipal bonds into a special purpose trust (a “TOB Trust”). A TOB Trust issues two classes of beneficial interests: short-term floating rate interests (“TOB Trust Certificates”), which are sold to third-party investors, and residual inverse floating rate interests (“TOB Residuals”), which are issued to the participating funds that contributed the municipal bonds to the TOB Trust. The TOB Trust Certificates have interest rates that reset weekly and their holders have the option to tender such certificates to the TOB Trust for redemption at par and any accrued interest at each reset date. The TOB Residuals held by a fund provide the fund with the right to cause the holders of a proportional share of the TOB Trust Certificates to tender their certificates to the TOB Trust at par plus accrued interest. The funds may withdraw a corresponding share of the municipal bonds from the TOB Trust. Other funds managed by the investment adviser may also contribute municipal bonds to a TOB Trust into which a fund has contributed bonds. If multiple BlackRock-advised funds participate in the same TOB Trust, the economic rights and obligations under the TOB Residuals will be shared among the funds ratably in proportion to their participation in the TOB Trust.

 

 

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Notes to Financial Statements  (unaudited)  (continued)

 

TOB Trusts are supported by a liquidity facility provided by a third-party bank or other financial institution (the “Liquidity Provider”) that allows the holders of the TOB Trust Certificates to tender their certificates in exchange for payment of par plus accrued interest on any business day. The tendered TOB Trust Certificates are remarketed by a Remarketing Agent. In the event of a failed remarketing, the TOB Trust may draw upon a loan from the Liquidity Provider to purchase the tendered TOB Trust Certificates. Any loans made by the Liquidity Provider will be secured by the purchased TOB Trust Certificates held by the TOB Trust and will be subject to an increased interest rate based on number of days the loan is outstanding.

The TOB Trust may be collapsed without the consent of a fund, upon the occurrence of a termination event as defined in the TOB Trust agreement. Upon the occurrence of a termination event, a TOB Trust would be liquidated with the proceeds applied first to any accrued fees owed to the trustee of the TOB Trust, the Remarketing Agent and the Liquidity Provider. Upon certain termination events, TOB Trust Certificates holders will be paid before the TOB Residuals holders (i.e., the Funds) whereas in other termination events, TOB Trust Certificates holders and TOB Residuals holders will be paid pro rata.

While a fund’s investment policies and restrictions expressly permit investments in inverse floating rate securities, such as TOB Residuals, they restrict the ability of a fund to borrow money for purposes of making investments. Each Fund’s transfer of the municipal bonds to a TOB Trust is considered a secured borrowing for financial reporting purposes. The cash received by the TOB Trust from the sale of the TOB Trust Certificates, less certain transaction expenses, is paid to a Fund. A Fund typically invests the cash received in additional municipal bonds.

Accounting for TOB Trusts: The municipal bonds deposited into a TOB Trust are presented in a Fund’s Schedule of Investments and the TOB Trust Certificates are shown in Other Liabilities in the Statements of Assets and Liabilities. Any loans drawn by the TOB Trust pursuant to the liquidity facility to purchase tendered TOB Trust Certificates are shown as Loan for TOB Trust Certificates. The carrying amount of a Fund’s payable to the holder of the TOB Trust Certificates, as reported in the Statements of Assets and Liabilities as TOB Trust Certificates, approximates its fair value.

Interest income, including amortization and accretion of premiums and discounts, from the underlying municipal bonds is recorded by a Fund on an accrual basis. Interest expense incurred on the TOB Trust transaction and other expenses related to remarketing, administration, trustee, liquidity and other services to a TOB Trust are shown as interest expense, fees and amortization of offering costs in the Statements of Operations. Fees paid upon creation of the TOB Trust are recorded as debt issuance costs and are amortized to interest expense, fees and amortization of offering costs in the Statements of Operations to the expected maturity of the TOB Trust. In connection with the restructurings of the TOB Trusts to non-bank sponsored TOB Trusts, a Fund incurred non-recurring, legal and restructuring fees, which are recorded as interest expense, fees and amortization of offering costs in the Statements of Operations. Amounts recorded within interest expense, fees and amortization of offering costs in the Statements of Operations are:

 

         
Fund Name   Interest Expense     Liquidity Fees      Other Expenses      Total  

California Municipal Opportunities

  $ 1,776,260     $ 435,093      $ 130,887      $   2,342,240    

New Jersey Municipal Bond

    66,149       19,786        9,325        95,260  

Pennsylvania Municipal Bond

    110,685       35,963        12,511        159,159  

Strategic Municipal Opportunities

    5,212,894       1,425,546        449,837        7,088,277  

For the six months ended November 30, 2022, the following table is a summary of each Fund’s TOB Trusts:

 

           
Fund Name    

Underlying
Municipal Bonds
Transferred to

TOB Trusts

 
 
 

(a)  

   

Liability for
TOB Trust
Certificates
 
 
(b)  
   



Range of
Interest Rates
on TOB Trust
Certificates at
Period End
 
 
 
 
 
    



Average

TOB Trust
Certificates
Outstanding

 

 
 
 

  

Daily Weighted   

Average Rate   

of Interest and   

Other Expenses   

on TOB Trusts   

California Municipal Opportunities

    $     366,503,440     $ 170,654,950       1.93% — 1.95%      $  220,032,981      2.12%

New Jersey Municipal Bond

                —           10,345,555      1.84   

Pennsylvania Municipal Bond

                —           17,823,260      1.78   

Strategic Municipal Opportunities

    792,847,930       545,679,973       1.92     —2.09           658,640,029      2.14   

 

  (a) 

The municipal bonds transferred to a TOB Trust are generally high grade municipal bonds. In certain cases, when municipal bonds transferred are lower grade municipal bonds, the TOB Trust transaction may include a credit enhancement feature that provides for the timely payment of principal and interest on the bonds to the TOB Trust by a credit enhancement provider in the event of default of the municipal bond. The TOB Trust would be responsible for the payment of the credit enhancement fee and the Funds, as TOB Residuals holders, would be responsible for reimbursement of any payments of principal and interest made by the credit enhancement provider. The maximum potential amounts owed by the Funds, for such reimbursements, as applicable, are included in the maximum potential amounts disclosed for recourse TOB Trusts in the Schedules of Investments.

 

 

  (b) 

TOB Trusts may be structured on a non-recourse or recourse basis. When a Fund invests in TOB Trusts on a non-recourse basis, the Liquidity Provider may be required to make a payment under the liquidity facility to allow the TOB Trust to repurchase TOB Trust Certificates. The Liquidity Provider will be reimbursed from the liquidation of bonds held in the TOB Trust. If a Fund invests in a TOB Trust on a recourse basis, a Fund enters into a reimbursement agreement with the Liquidity Provider where a Fund is required to reimburse the Liquidity Provider for any shortfall between the amount paid by the Liquidity Provider and proceeds received from liquidation of municipal bonds held in the TOB Trust (the “Liquidation Shortfall”). As a result, if a Fund invests in a recourse TOB Trust, a Fund will bear the risk of loss with respect to any Liquidation Shortfall. If multiple funds participate in any such TOB Trust, these losses will be shared ratably, including the maximum potential amounts owed by a Fund at November 30, 2022, in proportion to their participation in the TOB Trust. The recourse TOB Trusts are identified in the Schedules of Investments including the maximum potential amounts owed by a Fund at November 30, 2022.

 

 

5.

DERIVATIVE FINANCIAL INSTRUMENTS

The Funds engage in various portfolio investment strategies using derivative contracts both to increase the returns of the Funds and/or to manage their exposure to certain risks such as credit risk, equity risk, interest rate risk, foreign currency exchange rate risk, commodity price risk or other risks (e.g., inflation risk). Derivative financial instruments categorized by risk exposure are included in the Schedules of Investments. These contracts may be transacted on an exchange or over-the-counter (“OTC”).

 

 

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Notes to Financial Statements  (unaudited)  (continued)

 

Futures Contracts: Futures contracts are purchased or sold to gain exposure to, or manage exposure to, changes in interest rates (interest rate risk) and changes in the value of equity securities (equity risk) or foreign currencies (foreign currency exchange rate risk).

Futures contracts are exchange-traded agreements between the Funds and a counterparty to buy or sell a specific quantity of an underlying instrument at a specified price and on a specified date. Depending on the terms of a contract, it is settled either through physical delivery of the underlying instrument on the settlement date or by payment of a cash amount on the settlement date. Upon entering into a futures contract, the Funds are required to deposit initial margin with the broker in the form of cash or securities in an amount that varies depending on a contract’s size and risk profile. The initial margin deposit must then be maintained at an established level over the life of the contract. Amounts pledged, which are considered restricted, are included in cash pledged for futures contracts in the Statements of Assets and Liabilities.

Securities deposited as initial margin are designated in the Schedules of Investments and cash deposited, if any, are shown as cash pledged for futures contracts in the Statements of Assets and Liabilities. Pursuant to the contract, the Funds agree to receive from or pay to the broker an amount of cash equal to the daily fluctuation in market value of the contract (“variation margin”). Variation margin is recorded as unrealized appreciation (depreciation) and, if any, shown as variation margin receivable (or payable) on futures contracts in the Statements of Assets and Liabilities. When the contract is closed, a realized gain or loss is recorded in the Statements of Operations equal to the difference between the notional amount of the contract at the time it was opened and the notional amount at the time it was closed. The use of futures contracts involves the risk of an imperfect correlation in the movements in the price of futures contracts and interest rates, foreign currency exchange rates or underlying assets.

 

6.

INVESTMENT ADVISORY AGREEMENT AND OTHER TRANSACTIONS WITH AFFILIATES

Investment Advisory: The Trusts and the Corporation, on behalf of the Funds, entered into an Investment Advisory Agreement with the Manager, the Funds’ investment adviser and an indirect, wholly-owned subsidiary of BlackRock, Inc. (“BlackRock”), to provide investment advisory services and with respect to the Funds except Impact Municipal, administrative services. The Manager is responsible for the management of each Fund’s portfolio and provides the personnel, facilities, equipment and certain other services necessary to the operations of each Fund.

For such services, each Fund pays the Manager a monthly fee at an annual rate equal to the following percentages of the average daily value of each Fund’s net assets:

 

   
    Investment Advisory Fees
 

 

 

Average Daily Net Assets   California
Municipal
  Opportunities
    New Jersey
Municipal
Bond
    Pennsylvania
Municipal
Bond
    Impact
Municipal
    Strategic   
Municipal   
Opportunities   

First $1 billion

    0.38     0.52     0.52     0.45   0.55%

$1 billion — $3 billion

    0.36       0.49       0.49       0.42     0.52   

$3 billion — $5 billion

    0.34       0.47       0.47       0.41     0.50   

$5 billion — $10 billion

    0.33       0.45       0.45       0.39     0.48   

Greater than $10 billion

    0.32       0.44       0.44       0.38     0.47   

Service and Distribution Fees: The Trusts and the Corporation, on behalf of the Funds, entered into a Distribution Agreement and a Distribution and Service Plan with BlackRock Investments, LLC (“BRIL”), an affiliate of the Manager. Pursuant to the Distribution and Service Plan and in accordance with Rule 12b-1 under the 1940 Act, each Fund pays BRIL ongoing service and distribution fees. The fees are accrued daily and paid monthly at annual rates based upon the average daily net assets of the relevant share class of each Fund as follows:

 

 

 

 
        California Municipal Opportunities     New Jersey Municipal Bond     Pennsylvania Municipal Bond     Impact Municipal     Strategic Municipal Opportunities    
   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
    Share Class   Service Fees     Distribution Fees     Service Fees     Distribution Fees     Service Fees     Distribution Fees     Service Fees     Distribution Fees     Service Fees     Distribution Fees    
 

 

 

     

 

Service

    N/A       N/A       0.25     N/A       0.25     N/A       N/A       N/A       N/A     N/A      
 

Investor A

    0.25     N/A       0.25       N/A       0.25       N/A       0.25     N/A       0.25   N/A      
 

Investor A1

    0.10       N/A       0.10       N/A       0.10       N/A       N/A       N/A       0.10     N/A              
 

Investor C

    0.25       0.75     0.25       0.75     0.25       0.75     N/A       N/A       0.25     0.75%  
 

 

 

BRIL and broker-dealers, pursuant to sub-agreements with BRIL, provide shareholder servicing and distribution services to the Funds. The ongoing service and/or distribution fee compensates BRIL and each broker-dealer for providing shareholder servicing and/or distribution related services to shareholders.

For the six months ended November 30, 2022, the following table shows the class specific service and distribution fees borne directly by each share class of each Fund:

 

           
Fund Name   Service      Investor A      Investor A1      Investor C      Total  

California Municipal Opportunities

  $      $ 971,616      $ 42,256      $ 373,882      $   1,387,754  

New Jersey Municipal Bond

    8,475        136,634        7,011        75,696        227,816  

Pennsylvania Municipal Bond

    1,342        166,216        3,643        63,302        234,503  

Impact Municipal

           118                      118  

Strategic Municipal Opportunities

           1,547,072        10,083        557,215        2,114,370  

Administration: With respect to Impact Municipal, the Fund entered into an Administration Agreement with the Manager, an indirect, wholly-owned subsidiary of BlackRock, to provide administrative services. For these services, the Manager receives an administration fee computed daily and payable monthly, based on a percentage of the average daily net assets of the Fund. The administration fee, which is shown as administration in the Statements of Operations, is paid at the annual rates below.

 

   
Average Daily Net Assets   Administration Fees

First $500 million

  0.0425%

 

 

100  

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Notes to Financial Statements  (unaudited)  (continued)

 

 

 
Average Daily Net Assets   Administration Fees     

 

 

$500 million — $1 billion

    0.0400%  

$1 billion — $2 billion

    0.0375     

$2 billion — $4 billion

    0.0350     

$4 billion — $13 billion

    0.0325     

Greater than $13 billion

    0.0300     

In addition, with respect to Impact Municipal, the Manager charges each of the share classes an administration fee, which is shown as administration – class specific in the Statements of Operations, at an annual rate of 0.02% of the average daily net assets of each respective class.

For the six months ended November 30, 2022, the following table shows the class specific administration fees borne directly by each share class of the Fund:

 

 

 
Fund Name   Institutional     Investor A     Class K     Total  

 

 

Impact Municipal

  $ 11     $ 9     $ 4,698     $   4,718  

 

 

Transfer Agent: Pursuant to written agreements, certain financial intermediaries, some of which may be affiliates, provide the Funds with sub-accounting, recordkeeping, sub-transfer agency and other administrative services with respect to servicing of underlying investor accounts. For these services, these entities receive an asset-based fee or an annual fee per shareholder account, which will vary depending on share class and/or net assets. For the six months ended November 30, 2022, the Funds paid the following amounts to affiliates of BlackRock in return for these services, which are included in transfer agent — class specific in the Statements of Operations:

 

 

 
Fund Name   Institutional  

 

 

New Jersey Municipal Bond

  $ 34,054  

Pennsylvania Municipal Bond

    152,104  

Strategic Municipal Opportunities

    285,141  

 

 

The Manager maintains a call center that is responsible for providing certain shareholder services to the Funds. Shareholder services include responding to inquiries and processing purchases and sales based upon instructions from shareholders. For the six months ended November 30, 2022, each Fund reimbursed the Manager the following amounts for costs incurred in running the call center, which are included in transfer agent — class specific in the Statements of Operations:

 

 

 
Fund Name   Institutional      Service      Investor A      Investor A1      Investor C      Class K      Total  

 

 

California Municipal Opportunities

  $ 1,996      $      $ 2,004      $ 970      $ 303      $ 152      $   5,425  

New Jersey Municipal Bond

    303        786        606        245        158        63        2,161  

Pennsylvania Municipal Bond

    485        54        846        303        170        18        1,876  

Strategic Municipal Opportunities

    5,683               3,942        127        728        234        10,714  

 

 

For the six months ended November 30, 2022, the following table shows the class specific transfer agent fees borne directly by each share class of each Fund:

 

 

 
Fund Name   Institutional      Service      Investor A      Investor A1      Investor C      Class K      Total  

 

 

California Municipal Opportunities

  $ 495,777      $      $ 168,436      $ 17,268      $ 19,821      $ 762      $   702,064  

New Jersey Municipal Bond

    88,634        3,069        27,785        3,492        4,821        170        127,971  

Pennsylvania Municipal Bond

    217,845        704        28,613        3,113        5,449        265        255,989  

Impact Municipal

    63               62                      62        187  

Strategic Municipal Opportunities

    2,113,747               244,847        4,943        34,581        2,481        2,400,599  

 

 

Other Fees: For the six months ended November 30, 2022, affiliates earned underwriting discounts, direct commissions and dealer concessions on sales of each Fund’s Investor A Shares as follows:

 

 

 
Fund Name   Investor A  

 

 

California Municipal Opportunities

  $ 1,292  

New Jersey Municipal Bond

    566  

Pennsylvania Municipal Bond

    463  

Strategic Municipal Opportunities

    1,439  

 

 

For the six months ended November 30, 2022, affiliates received CDSCs as follows:

 

 

 
Fund Name   Investor A      Investor C  

 

 

California Municipal Opportunities

  $ 55,383      $ 1,048  

New Jersey Municipal Bond

    2,334        224  

Pennsylvania Municipal Bond

    11,995        99  

Strategic Municipal Opportunities

    46,922        3,979  

 

 

 

 

N O T E S   T O   F I N A N C I A L   S T A T E M E N T S

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Notes to Financial Statements  (unaudited)  (continued)

 

Expense Limitations, Waivers, Reimbursements, and Recoupments: With respect to each Fund, the Manager contractually agreed to waive its investment advisory fees by the amount of investment advisory fees each Fund pays to the Manager indirectly through its investment in affiliated money market funds (the “affiliated money market fund waiver”) through June 30, 2024. The contractual agreement may be terminated upon 90 days’ notice by a majority of the Independent Trustees, or by a vote of a majority of the outstanding voting securities of a Fund. With respect to California Municipal Opportunities, New Jersey Municipal Bond, Pennsylvania Municipal Bond and Impact Municipal the amount of waivers and/or reimbursements of fees and expenses made pursuant to the expense limitation described below will be reduced by the amount of the affiliated money market fund waiver. These amounts are included in fees waived and/or reimbursed by the Manager in the Statements of Operations. For the six months ended November 30, 2022, the amounts waived were as follows:

 

 

 
Fund Name  

Fees Waived and/or Reimbursed

by the Manager

 

 

 

California Municipal Opportunities

  $ 25,012  

New Jersey Municipal Bond

    10,419  

Pennsylvania Municipal Bond

    6,729  

Impact Municipal

    819  

Strategic Municipal Opportunities

    97,476  

 

 

With respect to California Municipal Opportunities, New Jersey Municipal Bond, Pennsylvania Municipal Bond and Impact Municipal, the Manager contractually agreed to waive and/or reimburse fees or expenses in order to limit expenses, excluding interest expense, dividend expense, tax expense, acquired fund fees and expenses, and certain other fund expenses, which constitute extraordinary expenses not incurred in the ordinary course of each Fund’s business (“expense limitation”). The expense limitations as a percentage of average daily net assets are as follows:

 

             
Fund Name   Institutional     Service     Investor A     Investor A1     Investor C     Class K   

California Municipal Opportunities

    0.44         0.69     0.54     1.44   0.39%

New Jersey Municipal Bond

    0.52       0.77       0.77       0.62       1.52     0.47   

Pennsylvania Municipal Bond

    0.54       0.79       0.79       0.64       1.54     0.49   

Impact Municipal

    0.58             0.83                 0.53   

The Manager has agreed not to reduce or discontinue the contractual expense limitations through June 30, 2024, with respect to California Municipal Opportunities, New Jersey Municipal Bond, Pennsylvania Municipal Bond and Impact Municipal unless approved by the Board, including a majority of the Independent Trustees, or by a vote of a majority of the outstanding voting securities of a Fund. These amounts of investment advisory fees waived and/or reimbursed are included in fees waived and/or reimbursed by the Manager in the Statements of Operations. For the six months ended November 30, 2022, the Funds waived the following amounts:

 

 

 
Fund Name   Fees Waived and/or Reimbursed
by the Manager
 

 

 

California Municipal Opportunities

  $ 193,041  

New Jersey Municipal Bond

    227,076  

Pennsylvania Municipal Bond

    234,050  

Impact Municipal

    136,791  

 

 

With respect to Strategic Municipal Opportunities, the Manager contractually agreed to waive 0.05% of its investment advisory fees through June 30, 2024. The agreement may be terminated upon 90 days’ notice by a majority of Independent Trustees of BlackRock Municipal Series Trust or by a vote of a majority of the outstanding voting securities of the Fund. This amount is included in fees waived and/or reimbursed by the Manager in the Statements of Operations. For the six months ended November 30, 2022, the Manager waived $1,676,683 pursuant to this agreement.

In addition, these amounts waived and/or reimbursed by the Manager are included in administration fees waived — class specific and transfer agent fees waived and/or reimbursed — class specific in the Statements of Operations. For the six months ended November 30, 2022, class specific expense waivers and/or reimbursements are as follows:

 

 

 
    Administration Fees Waived - Class Specific  
 

 

 

 
Fund Name   Institutional      Investor A      Class K      Total  

 

 

Impact Municipal

  $ 4      $ 3      $ 4,618      $ 4,625  

 

 

 

 

 
   

Transfer Agent Fees Waived and/or

Reimbursed by the Manager - Class Specific

 
 

 

 

 
Fund Name   Institutional     Service     Investor A     Investor A1     Investor C     Class K     Total   

California Municipal Opportunities

  $ 67,531     $     $     $     $ 1,212     $ 761     $ 69,504   

New Jersey Municipal Bond

    44,166       1,374       1,335       60       1,035       170       48,140   

Pennsylvania Municipal Bond

    144,706       436             1,291       2,284       264       148,981   

Impact Municipal

    52             53                   59       164   

Impact Municipal also had a waiver of administration fees, which are included in Administration fees waived in the Statements of Operations. For the six months ended November 30, 2022, the amount was $4,896.

With respect to the contractual expense limitation, if during Impact Municipal’s fiscal year the operating expenses of a share class, that at any time during the prior two fiscal years received a waiver and/or reimbursement from the Manager, are less than the current expense limitation for that share class, the Manager is entitled to be reimbursed by such share class up to the lesser of: (a) the amount of fees waived and/or expenses reimbursed during those prior two fiscal years under the agreement and (b) an amount not

 

 

102  

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Notes to Financial Statements  (unaudited)  (continued)

 

to exceed either the current expense limitation of that share class or the expense limitation of the share class in effect at the time that the share class received the applicable waiver and/or reimbursement, provided that:

(1) the Fund, of which the share class is a part, has more than $50 million in assets for the fiscal year, and

(2) the Manager or an affiliate continues to serve as the Fund’s investment adviser or administrator.

This repayment applies only to the contractual expense limitation on net expenses and does not apply to the contractual investment advisory fee waiver described above or any voluntary waivers that may be in effect from time to time. Effective March 15, 2029, the repayment arrangement between the Fund and the Manager pursuant to which such Fund may be required to repay amounts waived and/or reimbursed under the Fund’s contractual caps on net expenses will be terminated.

As of November 30, 2022, the fund level and class specific waivers and/or reimbursements subject to possible future recoupment under the expense limitation agreement are as follows:

 

 

 
    Expiring  
Fund Name/Fund Level/Share Class   05/31/24      05/31/25  

 

 

Impact Municipal

      

Fund Level

    $  75,939      $  141,687  

Institutional

      71        56  

Investor A

      72        56  

Class K

        2,155        4,677  

Interfund Lending: In accordance with an exemptive order (the “Order”) from the U.S. Securities and Exchange Commission (“SEC”), each Fund may participate in a joint lending and borrowing facility for temporary purposes (the “Interfund Lending Program”), subject to compliance with the terms and conditions of the Order, and to the extent permitted by each Fund’s investment policies and restrictions. California Municipal Opportunities, New Jersey Municipal Bond, Pennsylvania Municipal Bond and Strategic Municipal Opportunities are currently permitted to borrow under the Interfund Lending Program. Impact Municipal is currently permitted to borrow and lend under the Interfund Lending Program.

A lending BlackRock fund may lend in aggregate up to 15% of its net assets but may not lend more than 5% of its net assets to any one borrowing fund through the Interfund Lending Program. A borrowing BlackRock fund may not borrow through the Interfund Lending Program or from any other source more than 33 1/3% of its total assets (or any lower threshold provided for by the fund’s investment restrictions). If a borrowing BlackRock fund’s total outstanding borrowings exceed 10% of its total assets, each of its outstanding interfund loans will be subject to collateralization of at least 102% of the outstanding principal value of the loan. All interfund loans are for temporary or emergency purposes and the interest rate to be charged will be the average of the highest current overnight repurchase agreement rate available to a lending fund and the bank loan rate, as calculated according to a formula established by the Board.

During the period ended November 30, 2022, the Funds did not participate in the Interfund Lending Program.

Trustees and Officers: Certain trustees and/or officers of the Funds are directors and/or officers of BlackRock or its affiliates. The Funds reimburse the Manager for a portion of the compensation paid to the Funds’ Chief Compliance Officer, which is included in Trustees and Officer in the Statements of Operations.

 

7.

PURCHASES AND SALES

For the six months ended November 30, 2022, purchases and sales of investments, excluding short-term securities, were as follows:

 

 

 
Fund Name   Purchases      Sales  

 

 

California Municipal Opportunities

  $ 749,097,202      $ 964,794,538  

New Jersey Municipal Bond

    69,233,216        94,951,624  

Pennsylvania Municipal Bond

    107,002,269        187,929,927  

Impact Municipal

    8,476,658        8,216,799  

Strategic Municipal Opportunities

    1,298,287,907        2,400,077,418  

 

 

 

8.

INCOME TAX INFORMATION

It is each Fund’s policy to comply with the requirements of the Internal Revenue Code of 1986, as amended, applicable to regulated investment companies, and to distribute substantially all of its taxable income to its shareholders. Therefore, no U.S. federal income tax provision is required.

Each Fund files U.S. federal and various state and local tax returns. No income tax returns are currently under examination. The statute of limitations on each Fund’s U.S. federal tax returns generally remains open for a period of three years after they are filed. The statutes of limitations on each Fund’s state and local tax returns may remain open for an additional year depending upon the jurisdiction.

Management has analyzed tax laws and regulations and their application to the Funds as of November 30, 2022, inclusive of the open tax return years, and does not believe that there are any uncertain tax positions that require recognition of a tax liability in the Funds’ financial statements.

 

 

N O T E S   T O   F I N A N C I A L   S T A T E M E N T S

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Notes to Financial Statements  (unaudited)  (continued)

 

As of November 30, 2022, the Funds had non-expiring capital loss carryforwards available to offset future realized capital gains as follows:

 

   
Fund Name   Non-Expiring  

California Municipal Opportunities

  $ 84,363,632  

New Jersey Municipal Bond

    10,019,851  

Pennsylvania Municipal Bond

    20,296,131  

Strategic Municipal Opportunities

    304,710,318  

As of November 30, 2022, gross unrealized appreciation and depreciation based on cost of investments (including short positions and derivatives, if any) for U.S. federal income tax purposes were as follows:

 

 

 
Fund Name   Tax Cost     

Gross Unrealized

Appreciation

    

Gross Unrealized

Depreciation

   

Net Unrealized

Appreciation

(Depreciation)

 

 

 

California Municipal Opportunities

  $ 2,663,374,252      $ 14,621,543      $ (163,075,747   $ (148,454,204

New Jersey Municipal Bond

    309,920,419        5,775,571        (14,316,025     (8,540,454

Pennsylvania Municipal Bond

    434,165,299        1,453,557        (29,166,764     (27,713,207

Impact Municipal

    48,772,121        216,279        (2,838,115     (2,621,836

Strategic Municipal Opportunities

    6,555,341,166        25,575,155        (842,088,601     (816,513,446

 

9.

BANK BORROWINGS

The Trusts and the Corporation, along with certain other funds managed by the Manager and its affiliates (“Participating Funds”), are a party to a 364-day, $2.50 billion credit agreement with a group of lenders. Under this agreement, the Funds may borrow to fund shareholder redemptions. Excluding commitments designated for certain individual funds, the Participating Funds, including the Funds, can borrow up to an aggregate commitment amount of $1.75 billion at any time outstanding, subject to asset coverage and other limitations as specified in the agreement. The credit agreement has the following terms: a fee of 0.10% per annum on unused commitment amounts and interest at a rate equal to the higher of (a) Overnight Bank Funding Rate (“OBFR”) (but, in any event, not less than 0.00%) on the date the loan is made plus 0.80% per annum, (b) the Fed Funds rate (but, in any event, not less than 0.00%) in effect from time to time plus 0.80% per annum on amounts borrowed or (c) the sum of (x) Daily Simple Secured Overnight Financing Rate (“SOFR”) (but, in any event, not less than 0.00%) on the date the loan is made plus 0.10% and (y) 0.80% per annum. The agreement expires in April 2023 unless extended or renewed. These fees were allocated among such funds based upon portions of the aggregate commitment available to them and relative net assets of Participating Funds. During the six months ended November 30, 2022, the Funds did not borrow under the credit agreement.

 

10.

PRINCIPAL RISKS

In the normal course of business, the Funds invest in securities or other instruments and may enter into certain transactions, and such activities subject each Fund to various risks, including among others, fluctuations in the market (market risk) or failure of an issuer to meet all of its obligations. The value of securities or other instruments may also be affected by various factors, including, without limitation: (i) the general economy; (ii) the overall market as well as local, regional or global political and/or social instability; (iii) regulation, taxation or international tax treaties between various countries; or (iv) currency, interest rate and price fluctuations. Local, regional or global events such as war, acts of terrorism, the spread of infectious illness or other public health issues, recessions, or other events could have a significant impact on the Funds and their investments. Each Fund’s prospectus provides details of the risks to which each Fund is subject.

A Fund structures and “sponsors” the TOB Trusts in which it holds TOB Residuals and has certain duties and responsibilities, which may give rise to certain additional risks including, but not limited to, compliance, securities law and operational risks.

As short-term interest rates rise, the Funds’ investments in the TOB Trusts may adversely affect the Funds’ net investment income and dividends to shareholders. Also, fluctuations in the market value of municipal bonds deposited into the TOB Trust may adversely affect the Funds’ NAVs per share.

The SEC and various federal banking and housing agencies have adopted credit risk retention rules for securitizations (the “Risk Retention Rules”). The Risk Retention Rules would require the sponsor of a TOB Trust to retain at least 5% of the credit risk of the underlying assets supporting the TOB Trust’s municipal bonds. The Risk Retention Rules may adversely affect the Funds’ ability to engage in TOB Trust transactions or increase the costs of such transactions in certain circumstances.

TOB Trusts constitute an important component of the municipal bond market. Any modifications or changes to rules governing TOB Trusts may adversely impact the municipal market and the Funds, including through reduced demand for and liquidity of municipal bonds and increased financing costs for municipal issuers. The ultimate impact of any potential modifications on the TOB Trust market and the overall municipal market is not yet certain.

Market Risk: Each Fund may be exposed to prepayment risk, which is the risk that borrowers may exercise their option to prepay principal earlier than scheduled during periods of declining interest rates, which would force each Fund to reinvest in lower yielding securities. Each Fund may also be exposed to reinvestment risk, which is the risk that income from each Fund’s portfolio will decline if each Fund invests the proceeds from matured, traded or called fixed-income securities at market interest rates that are below each Fund portfolio’s current earnings rate.

Municipal securities are subject to the risk that litigation, legislation or other political events, local business or economic conditions, credit rating downgrades, or the bankruptcy of the issuer could have a significant effect on an issuer’s ability to make payments of principal and/or interest or otherwise affect the value of such securities. Municipal securities can be significantly affected by political or economic changes, including changes made in the law after issuance of the securities, as well as uncertainties in the municipal market related to, taxation, legislative changes or the rights of municipal security holders, including in connection with an issuer insolvency. Municipal securities

 

 

104  

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Notes to Financial Statements  (unaudited)  (continued)

 

backed by current or anticipated revenues from a specific project or specific assets can be negatively affected by the discontinuance of the tax benefits supporting the project or assets or the inability to collect revenues for the project or from the assets. Municipal securities may be less liquid than taxable bonds, and there may be less publicly available information on the financial condition of municipal security issuers than for issuers of other securities.

Infectious Illness Risk: An outbreak of an infectious illness, such as the COVID-19 pandemic, may adversely impact the economies of many nations and the global economy and may impact individual issuers and capital markets in ways that cannot be foreseen. An infectious illness outbreak may result in, among other things, closed international borders, prolonged quarantines, supply chain disruptions, market volatility or disruptions and other significant economic, social and political impacts.

Valuation Risk: The price a Fund could receive upon the sale of any particular portfolio investment may differ from a Fund’s valuation of the investment, particularly for securities that trade in thin or volatile markets or that are valued using a fair valuation technique or a price provided by an independent pricing service. Changes to significant unobservable inputs and assumptions (i.e., publicly traded company multiples, growth rate, time to exit) due to the lack of observable inputs may significantly impact the resulting fair value and therefore a Fund’s results of operations. As a result, the price received upon the sale of an investment may be less than the value ascribed by a Fund, and a Fund could realize a greater than expected loss or lesser than expected gain upon the sale of the investment. A Fund’s ability to value its investments may also be impacted by technological issues and/or errors by pricing services or other third-party service providers.

Counterparty Credit Risk: The Funds may be exposed to counterparty credit risk, or the risk that an entity may fail to or be unable to perform on its commitments related to unsettled or open transactions, including making timely interest and/or principal payments or otherwise honoring its obligations. The Funds manage counterparty credit risk by entering into transactions only with counterparties that the Manager believes have the financial resources to honor their obligations and by monitoring the financial stability of those counterparties. Financial assets, which potentially expose the Funds to market, issuer and counterparty credit risks, consist principally of financial instruments and receivables due from counterparties. The extent of the Funds’ exposure to market, issuer and counterparty credit risks with respect to these financial assets is approximately their value recorded in the Statements of Assets and Liabilities, less any collateral held by the Funds.

A derivative contract may suffer a mark-to-market loss if the value of the contract decreases due to an unfavorable change in the market rates or values of the underlying instrument. Losses can also occur if the counterparty does not perform under the contract.

With exchange-traded futures, there is less counterparty credit risk to the Funds since the exchange or clearinghouse, as counterparty to such instruments, guarantees against a possible default. The clearinghouse stands between the buyer and the seller of the contract; therefore, credit risk is limited to failure of the clearinghouse. While offset rights may exist under applicable law, a Fund does not have a contractual right of offset against a clearing broker or clearinghouse in the event of a default (including the bankruptcy or insolvency). Additionally, credit risk exists in exchange-traded futures with respect to initial and variation margin that is held in a clearing broker’s customer accounts. While clearing brokers are required to segregate customer margin from their own assets, in the event that a clearing broker becomes insolvent or goes into bankruptcy and at that time there is a shortfall in the aggregate amount of margin held by the clearing broker for all its clients, typically the shortfall would be allocated on a pro rata basis across all the clearing broker’s customers, potentially resulting in losses to the Funds.

Concentration Risk: A diversified portfolio, where this is appropriate and consistent with a fund’s objectives, minimizes the risk that a price change of a particular investment will have a material impact on the NAV of a fund. The investment concentrations within each Fund’s portfolio are disclosed in its Schedule of Investments.

Certain Funds invest a substantial amount of their assets in issuers located in a single state or limited number of states. When a fund concentrates its investments in this manner, it assumes the risk that economic, regulatory, political or social conditions affecting that state or group of states could have a significant impact on the fund and could affect the income from, or the value or liquidity of, the fund’s portfolio. Investment percentages in specific states or U.S. territories are presented in the Schedules of Investments.

Certain Funds invest a significant portion of their assets in securities within a single or limited number of market sectors. When a fund concentrates its investments in this manner, it assumes the risk that economic, regulatory, political and social conditions affecting such sectors may have a significant impact on the Fund and could affect the income from, or the value or liquidity of, the Fund’s portfolio. Investment percentages in specific sectors are presented in the Schedules of Investments.

Certain Funds invest a significant portion of their assets in high yield securities. High yield securities that are rated below investment-grade (commonly referred to as “junk bonds”) or are unrated may be deemed speculative, involve greater levels of risk than higher-rated securities of similar maturity and are more likely to default. High yield securities may be issued by less creditworthy issuers, and issuers of high yield securities may be unable to meet their interest or principal payment obligations. High yield securities are subject to extreme price fluctuations, may be less liquid than higher rated fixed-income securities, even under normal economic conditions, and frequently have redemption features.

Certain Funds invest a significant portion of their assets in fixed-income securities and/or use derivatives tied to the fixed-income markets. Changes in market interest rates or economic conditions may affect the value and/or liquidity of such investments. Interest rate risk is the risk that prices of bonds and other fixed-income securities will decrease as interest rates rise and increase as interest rates fall. The Funds may be subject to a greater risk of rising interest rates due to the recent period of historically low interest rates. The Federal Reserve has recently begun to raise the federal funds rate as part of its efforts to address inflation. There is a risk that interest rates will continue to rise, which will likely drive down the prices of bonds and other fixed-income securities, and could negatively impact the Funds performance.

Significant Shareholder Redemption Risk: Certain shareholders may own or manage a substantial amount of fund shares and/or hold their fund investments for a limited period of time. Large redemptions of fund shares by these shareholders may force a fund to sell portfolio securities, which may negatively impact the fund’s NAV, increase the fund’s brokerage costs, and/or accelerate the realization of taxable income/gains and cause the fund to make additional taxable distributions to shareholders.

LIBOR Transition Risk: The United Kingdom’s Financial Conduct Authority announced a phase out of the London Interbank Offered Rate (“LIBOR”). Although many LIBOR rates ceased to be published or no longer are representative of the underlying market they seek to measure after December 31, 2021, a selection of widely used USD LIBOR rates will continue to be published through June 2023 in order to assist with the transition. The Funds may be exposed to financial instruments tied to LIBOR to determine

 

 

N O T E S   T O   F I N A N C I A L   S T A T E M E N T S

  105


Notes to Financial Statements  (unaudited)  (continued)

 

payment obligations, financing terms, hedging strategies or investment value. The transition process away from LIBOR might lead to increased volatility and illiquidity in markets for, and reduce the effectiveness of new hedges placed against instruments whose terms currently include LIBOR. The ultimate effect of the LIBOR transition process on the Funds is uncertain.

 

11.

CAPITAL SHARE TRANSACTIONS

Transactions in capital shares for each class were as follows:

 

 

 
    Six Months Ended
11/30/22
     Year Ended
05/31/22
 
 

 

 

    

 

 

 
Fund Name / Share Class   Shares      Amounts      Shares      Amounts  

 

 

California Municipal Opportunities

          

Institutional

          

Shares sold

    61,368,215      $   716,278,780        78,483,705      $   982,634,726  

Shares issued in reinvestment of distributions

    1,697,205        19,766,776        2,613,487        33,213,306  

Shares redeemed

    (83,963,580      (979,022,503      (69,750,137      (858,877,218
 

 

 

    

 

 

    

 

 

    

 

 

 
    (20,898,160    $ (242,976,947      11,347,055      $ 156,970,814  
 

 

 

    

 

 

    

 

 

    

 

 

 

Investor A

          

Shares sold and automatic conversion of shares

    6,002,209      $ 70,475,420        12,050,947      $ 154,784,733  

Shares issued in reinvestment of distributions

    777,308        9,042,188        1,213,100        15,424,427  

Shares redeemed

    (15,145,302      (176,334,398      (21,640,028      (273,782,237
 

 

 

    

 

 

    

 

 

    

 

 

 
    (8,365,785    $ (96,816,790      (8,375,981    $  (103,573,077
 

 

 

    

 

 

    

 

 

    

 

 

 

Investor A1

          

Shares issued in reinvestment of distributions

    58,240      $ 677,960        86,172      $ 1,096,465  

Shares redeemed

    (381,816      (4,466,163      (675,599      (8,666,881
 

 

 

    

 

 

    

 

 

    

 

 

 
    (323,576    $ (3,788,203      (589,427    $ (7,570,416
 

 

 

    

 

 

    

 

 

    

 

 

 

Investor C

          

Shares sold

    150,803      $ 1,773,613        557,617      $ 7,216,496  

Shares issued in reinvestment of distributions

    55,158        642,139        70,566        894,260  

Shares redeemed and automatic conversion of shares

    (1,275,555      (14,851,124      (1,842,830      (23,389,502
 

 

 

    

 

 

    

 

 

    

 

 

 
    (1,069,594    $ (12,435,372      (1,214,647    $ (15,278,746
 

 

 

    

 

 

    

 

 

    

 

 

 

Class K

          

Shares sold

    2,058,301      $ 23,841,210        4,303,925      $ 55,630,171  

Shares issued in reinvestment of distributions

    84,323        986,719        172,622        2,195,305  

Shares redeemed

    (6,921,856      (80,536,902      (3,544,245      (45,227,249
 

 

 

    

 

 

    

 

 

    

 

 

 
    (4,779,232    $ (55,708,973      932,302      $ 12,598,227  
 

 

 

    

 

 

    

 

 

    

 

 

 
    (35,436,347    $ (411,726,285      2,099,302      $ 43,146,802  
 

 

 

    

 

 

    

 

 

    

 

 

 

 

 

 
    Six Months Ended
11/30/22
       Year Ended
05/31/22
 
 

 

 

      

 

 

 
Fund Name / Share Class   Shares      Amounts        Shares      Amounts  

 

 

New Jersey Municipal Bond

            

Institutional

            

Shares sold

    3,257,075      $ 32,786,270          4,902,090      $ 54,631,779  

Shares issued in reinvestment of distributions

    217,060        2,179,720          378,971        4,245,371  

Shares redeemed

    (5,251,147      (52,671,684        (5,726,508      (62,106,938
 

 

 

    

 

 

      

 

 

    

 

 

 
    (1,777,012    $ (17,705,694        (445,447    $ (3,229,788
 

 

 

    

 

 

      

 

 

    

 

 

 

Service

            

Shares sold

    138      $ 1,400          17,959      $ 208,861  

Shares issued in reinvestment of distributions

    9,814        98,547          16,180        181,160  

Shares redeemed

    (47,040      (482,321        (22,797      (260,767
 

 

 

    

 

 

      

 

 

    

 

 

 
    (37,088    $ (382,374        11,342      $ 129,254  
 

 

 

    

 

 

      

 

 

    

 

 

 

Investor A

            

Shares sold and automatic conversion of shares

    1,424,051      $ 14,424,934          1,655,139      $ 18,512,399  

Shares issued in reinvestment of distributions

    152,621        1,533,735          246,568        2,764,186  

Shares redeemed

    (2,063,532      (20,569,489        (2,147,759      (23,915,053
 

 

 

    

 

 

      

 

 

    

 

 

 
    (486,860    $ (4,610,820        (246,052    $   (2,638,468
 

 

 

    

 

 

      

 

 

    

 

 

 

 

 

106  

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Notes to Financial Statements  (unaudited)  (continued)

 

 

 
    Six Months Ended
11/30/22
     Year Ended
05/31/22
 
 

 

 

    

 

 

 
Fund Name / Share Class (continued)   Shares      Amounts      Shares      Amounts  

 

 

New Jersey Municipal Bond (continued)

          

Investor A1

          

Shares issued in reinvestment of distributions

    15,549      $ 156,308        25,492      $ 285,967  

Shares redeemed

    (72,124      (715,333      (127,982      (1,448,072
 

 

 

    

 

 

    

 

 

    

 

 

 
    (56,575    $ (559,025      (102,490    $ (1,162,105
 

 

 

    

 

 

    

 

 

    

 

 

 

Investor C

          

Shares sold

    85,650      $ 857,908        116,954      $ 1,338,291  

Shares issued in reinvestment of distributions

    16,706        167,717        32,073        359,699  

Shares redeemed and automatic conversion of shares

    (369,348      (3,724,574      (702,321      (7,772,179
 

 

 

    

 

 

    

 

 

    

 

 

 
    (266,992    $ (2,698,949      (553,294    $ (6,074,189
 

 

 

    

 

 

    

 

 

    

 

 

 

Class K

          

Shares sold

    30,704      $ 309,495        75,896      $ 855,041  

Shares issued in reinvestment of distributions

    3,695        37,092        6,936        77,689  

Shares redeemed

    (59,296      (591,566      (92,848      (1,000,095
 

 

 

    

 

 

    

 

 

    

 

 

 
    (24,897    $ (244,979      (10,016    $ (67,365
 

 

 

    

 

 

    

 

 

    

 

 

 
    (2,649,424    $   (26,201,841      (1,345,957    $   (13,042,661
 

 

 

    

 

 

    

 

 

    

 

 

 

 

 

 
    Six Months Ended
11/30/22
     Year Ended
05/31/22
 
 

 

 

    

 

 

 
Fund Name / Share Class   Shares      Amounts      Shares      Amounts  

 

 

Pennsylvania Municipal Bond

          

Institutional

          

Shares sold

    2,868,283      $ 27,832,563        5,785,370      $ 63,633,415  

Shares issued in reinvestment of distributions

    198,043        1,919,911        428,015        4,685,863  

Shares redeemed

    (7,825,248      (75,902,799      (9,942,737      (105,003,672
 

 

 

    

 

 

    

 

 

    

 

 

 
    (4,758,922    $ (46,150,325      (3,729,352    $ (36,684,394
 

 

 

    

 

 

    

 

 

    

 

 

 

Service

          

Shares sold

    965      $ 9,700        26,113      $ 291,146  

Shares issued in reinvestment of distributions

    1,487        14,422        4,755        52,191  

Shares redeemed

    (28,156      (275,694      (107,803      (1,115,027
 

 

 

    

 

 

    

 

 

    

 

 

 
    (25,704    $ (251,572      (76,935    $ (771,690
 

 

 

    

 

 

    

 

 

    

 

 

 

Investor A

          

Shares sold and automatic conversion of shares

    604,671      $ 5,965,404        1,869,750      $ 20,830,652  

Shares issued in reinvestment of distributions

    173,976        1,687,680        306,729        3,358,362  

Shares redeemed

    (2,008,534      (19,385,338      (2,449,797      (26,581,633
 

 

 

    

 

 

    

 

 

    

 

 

 
    (1,229,887    $ (11,732,254      (273,318    $ (2,392,619
 

 

 

    

 

 

    

 

 

    

 

 

 

Investor A1

          

Shares issued in reinvestment of distributions

    7,074      $ 68,647        11,626      $ 127,274  

Shares redeemed

    (24,442      (235,947      (50,823      (569,644
 

 

 

    

 

 

    

 

 

    

 

 

 
    (17,368    $ (167,300      (39,197    $ (442,370
 

 

 

    

 

 

    

 

 

    

 

 

 

Investor C

          

Shares sold

    50,673      $ 495,248        88,069      $ 983,649  

Shares issued in reinvestment of distributions

    12,453        120,843        23,480        257,272  

Shares redeemed and automatic conversion of shares

    (284,547      (2,773,067      (560,257      (6,111,562
 

 

 

    

 

 

    

 

 

    

 

 

 
    (221,421    $ (2,156,976      (448,708    $ (4,870,641
 

 

 

    

 

 

    

 

 

    

 

 

 

Class K

          

Shares sold

    232,347      $ 2,270,017        379,523      $ 4,112,899  

Shares issued in reinvestment of distributions

    12,024        116,408        17,601        191,907  

Shares redeemed

    (218,903      (2,121,789      (194,524      (2,046,920
 

 

 

    

 

 

    

 

 

    

 

 

 
    25,468      $ 264,636        202,600      $ 2,257,886  
 

 

 

    

 

 

    

 

 

    

 

 

 
    (6,227,834    $   (60,193,791      (4,364,910    $ (42,903,828
 

 

 

    

 

 

    

 

 

    

 

 

 

 

 

N O T E S   T O   F I N A N C I A L   S T A T E M E N T S

  107


Notes to Financial Statements  (unaudited)  (continued)

 

 

 
    Six Months Ended
11/30/22
     Period from
03/14/22(a)
to 05/31/22
 
 

 

 

    

 

 

 
Fund Name / Share Class   Shares      Amounts      Shares      Amounts  

 

 

Impact Municipal

          

Institutional

          

Shares sold

    2,366      $ 22,191        10,001      $ 100,010  

Shares issued in reinvestment of distributions

    33        311                

Shares redeemed

                  (1      (10
 

 

 

    

 

 

    

 

 

    

 

 

 
    2,399      $ 22,502        10,000      $ 100,000  
 

 

 

    

 

 

    

 

 

    

 

 

 

Investor A

          

Shares sold

         $        10,001      $ 100,010  

Shares redeemed

                  (1      (10
 

 

 

    

 

 

    

 

 

    

 

 

 
         $        10,000      $ 100,000  
 

 

 

    

 

 

    

 

 

    

 

 

 

Class K

          

Shares sold

    3,113      $ 28,015        4,980,001      $ 49,800,010  

Shares issued in reinvestment of distributions

    6        55                

Shares redeemed

    (8      (74      (1      (10
 

 

 

    

 

 

    

 

 

    

 

 

 
    3,111      $ 27,996        4,980,000      $   49,800,000  
 

 

 

    

 

 

    

 

 

    

 

 

 
    5,510      $ 50,498        5,000,000      $ 50,000,000  
 

 

 

    

 

 

    

 

 

    

 

 

 

 

(a) 

Commencement of operations.

 

 

 
    Six Months Ended
11/30/22
     Year Ended
05/31/22
 
 

 

 

    

 

 

 
Fund Name / Share Class   Shares      Amounts      Shares      Amounts  

 

 

Strategic Municipal Opportunities

          

Institutional

          

Shares sold

    175,544,972      $ 1,833,500,489        221,635,282      $ 2,547,590,478  

Shares issued in reinvestment of distributions

    5,294,153        54,746,689        9,432,340        109,013,179  

Shares redeemed

    (272,592,258      (2,825,910,751      (247,122,969      (2,763,909,335
 

 

 

    

 

 

    

 

 

    

 

 

 
    (91,753,133    $ (937,663,573      (16,055,347    $ (107,305,678

Investor A

          

Shares sold and automatic conversion of shares

    11,718,431      $ 122,423,004        23,740,349      $ 276,113,467  

Shares issued in reinvestment of distributions

    1,326,044        13,705,926        2,477,514        28,663,361  

Shares redeemed

    (30,972,489      (321,365,492      (43,852,452      (498,701,220
 

 

 

    

 

 

    

 

 

    

 

 

 
    (17,928,014    $ (185,236,562      (17,634,589    $ (193,924,392
 

 

 

    

 

 

    

 

 

    

 

 

 

Investor A1

          

Shares issued in reinvestment of distributions

    16,453      $ 169,990        26,819      $ 310,102  

Shares redeemed

    (304,462      (3,147,733      (135,405      (1,561,027
 

 

 

    

 

 

    

 

 

    

 

 

 
    (288,009    $ (2,977,743      (108,586    $ (1,250,925
 

 

 

    

 

 

    

 

 

    

 

 

 

Investor C

          

Shares sold

    363,075      $ 3,772,263        1,192,372      $ 13,983,719  

Shares issued in reinvestment of distributions

    85,021        879,145        151,885        1,752,219  

Shares redeemed and automatic conversion of shares

    (3,491,067      (36,330,213      (4,343,229      (49,911,373
 

 

 

    

 

 

    

 

 

    

 

 

 
    (3,042,971    $ (31,678,805      (2,998,972    $ (34,175,435
 

 

 

    

 

 

    

 

 

    

 

 

 

Class K

          

Shares sold

    5,487,818      $ 57,331,728        5,755,720      $ 66,750,562  

Shares issued in reinvestment of distributions

    120,122        1,243,531        261,433        3,028,787  

Shares redeemed

    (5,837,417      (60,625,654      (8,685,680      (99,017,904
 

 

 

    

 

 

    

 

 

    

 

 

 
    (229,477    $ (2,050,395      (2,668,527    $ (29,238,555
 

 

 

    

 

 

    

 

 

    

 

 

 
    (113,241,604    $   (1,159,607,078      (39,466,021    $ (365,894,985
 

 

 

    

 

 

    

 

 

    

 

 

 

As of November 30, 2022, shares owned by BlackRock Financial Management, Inc., an affiliate of the Funds, were as follows:

 

 

 
Fund Name   Institutional      Investor A      Class K  

 

 

New Jersey Municipal Bond

                  18,124  

Impact Municipal

    10,000        10,000        4,980,000  

 

 

 

 

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Notes to Financial Statements  (unaudited)  (continued)

 

12.

SUBSEQUENT EVENTS

Management has evaluated the impact of all subsequent events on the Funds through the date the financial statements were issued and has determined that there were no subsequent events requiring adjustment or additional disclosure in the financial statements.

 

 

N O T E S   T O   F I N A N C I A L   S T A T E M E N T S

  109


Statement Regarding Liquidity Risk Management Program

 

In compliance with Rule 22e-4 under the Investment Company Act of 1940, as amended (the “Liquidity Rule”), BlackRock California Municipal Series Trust, BlackRock Multi-State Municipal Series Trust, BlackRock Municipal Bond Fund, Inc. and BlackRock Municipal Series Trust (the “Trusts”) have adopted and implemented a liquidity risk management program (the “Program”) for BlackRock California Municipal Opportunities Fund, BlackRock New Jersey Municipal Bond Fund, BlackRock Pennsylvania Municipal Bond Fund, BlackRock Impact Municipal Fund and BlackRock Strategic Municipal Opportunities Fund (the “Funds”), each a series of the respective Trust, which is reasonably designed to assess and manage each Fund’s liquidity risk.

The Board of Trustees (the “Board”) of the Trusts, on behalf of the Funds, met on November 10-11, 2022 (the “Meeting”) to review the Program. The Board previously appointed BlackRock Advisors, LLC, the investment adviser to each Fund, as the program administrator for each Fund’s Program. BlackRock also previously delegated oversight of the Program to the 40 Act Liquidity Risk Management Committee (the “Committee”). At the Meeting, the Committee, on behalf of BlackRock, provided the Board with a report that addressed the operation of the Program and assessed its adequacy and effectiveness of implementation, including the management of each Fund’s Highly Liquid Investment Minimum (“HLIM”) where applicable, and any material changes to the Program (the “Report”). The Report covered the period from October 1, 2021 through September 30, 2022 (the “Program Reporting Period”).

The Report described the Program’s liquidity classification methodology for categorizing each Fund’s investments (including derivative transactions) into one of four liquidity buckets. It also referenced the methodology used by BlackRock to establish each Fund’s HLIM and noted that the Committee reviews and ratifies the HLIM assigned to each Fund no less frequently than annually. The Report also discussed notable events affecting liquidity over the Program Reporting Period, including the imposition of capital controls in certain countries.

The Report noted that the Program complied with the key factors for consideration under the Liquidity Rule for assessing, managing and periodically reviewing each Fund’s liquidity risk, as follows:

 

  a)

The Fund’s investment strategy and liquidity of portfolio investments during both normal and reasonably foreseeable stressed conditions.During the Program Reporting Period, the Committee reviewed whether each Fund’s strategy is appropriate for an open-end fund structure with a focus on funds with more significant and consistent holdings of less liquid and illiquid assets. The Committee also factored a fund’s concentration in an issuer into the liquidity classification methodology by taking issuer position sizes into account. Where a fund participated in borrowings for investment purposes (such as tender option bonds or reverse repurchase agreements), such borrowings were factored into the Program’s calculation of a fund’s liquidity bucketing. A fund’s derivative exposure was also considered in such calculation.

 

  b)

Short-term and long-term cash flow projections during both normal and reasonably foreseeable stressed conditions. During the Program Reporting Period, the Committee reviewed historical redemption activity and used this information as a component to establish each Fund’s reasonably anticipated trading size utilized for liquidity classifications. Each Fund has adopted an in-kind redemption policy which may be utilized to meet larger redemption requests. The Committee may also take into consideration a fund’s shareholder ownership concentration (which, depending on product type and distribution channel, may or may not be available), a fund’s distribution channels, and the degree of certainty associated with a fund’s short-term and long-term cash flow projections.

 

  c)

Holdings of cash and cash equivalents, as well as borrowing arrangements. Committee considered the terms of the credit facility committed to each Fund, the financial health of the institution providing the facility and the fact that the credit facility is shared among multiple funds (including that a portion of the aggregate commitment amount is specifically designated for BlackRock Floating Rate Income Portfolio, a series of BlackRock Funds V, and BlackRock Floating Rate Loan ETF, a series of BlackRock ETF Trust II). The Committee also considered other types of borrowing available to the Funds, such as the ability to use reverse repurchase agreements and interfund lending, as applicable.

There were no material changes to the Program during the Program Reporting Period other than the enhancement of certain model components in the Program’s classification methodology. The Report provided to the Board stated that the Committee concluded that based on the operation of the functions, as described in the Report, the Program is operating as intended and is effective in implementing the requirements of the Liquidity Rule.

 

 

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Additional Information

 

Dividend Policy

Each Fund’s dividend policy is to distribute all or a portion of its net investment income to its shareholders on a monthly/quarterly basis. In order to provide shareholders with a more stable level of dividend distributions, the distributions paid by a Fund for any particular month/quarter may be more or less than the amount of net investment income earned by a Fund during such month/quarter. The portion of distributions that exceeds a Fund current and accumulated earnings and profits, which are measured on a tax basis, will constitute a nontaxable return of capital. The Funds’ current accumulated but undistributed net investment income, if any, is disclosed as accumulated earnings (loss) in the Statements of Assets and Liabilities, which comprises part of the financial information included in this report.

General Information

Quarterly performance, semi-annual and annual reports, current net asset value and other information regarding the Funds may be found on BlackRock’s website, which can be accessed at blackrock.com. Any reference to BlackRock’s website in this report is intended to allow investors public access to information regarding the Funds and does not, and is not intended to, incorporate BlackRock’s website in this report.

Householding

The Funds will mail only one copy of shareholder documents, including prospectuses, annual and semi-annual reports, Rule 30e-3 notices and proxy statements, to shareholders with multiple accounts at the same address. This practice is commonly called “householding” and is intended to reduce expenses and eliminate duplicate mailings of shareholder documents. Mailings of your shareholder documents may be householded indefinitely unless you instruct us otherwise. If you do not want the mailing of these documents to be combined with those for other members of your household, please call the Funds at (800) 441-7762.

Availability of Quarterly Schedule of Investments

The Funds file their complete schedules of portfolio holdings with the SEC for the first and third quarters of each fiscal year as an exhibit to their reports on Form N-PORT. The Funds’ Forms N-PORT are available on the SEC’s website at sec.gov. Additionally, each Fund makes its portfolio holdings for the first and third quarters of each fiscal year available at blackrock.com/fundreports.

Availability of Proxy Voting Policies, Procedures and Voting Records

A description of the policies and procedures that the Funds use to determine how to vote proxies relating to portfolio securities and information about how the Funds voted proxies relating to securities held in the Funds’ portfolios during the most recent 12-month period ended June 30 is available without charge, upon request (1) by calling (800) 441-7762; (2) on the BlackRock website at blackrock.com; and (3) on the SEC’s website at sec.gov.

BlackRock’s Mutual Fund Family

BlackRock offers a diverse lineup of open-end mutual funds crossing all investment styles and managed by experts in equity, fixed-income and tax-exempt investing. Visit blackrock.com for more information.

Shareholder Privileges

Account Information

Call us at (800) 441-7762 from 8:00 AM to 6:00 PM ET on any business day to get information about your account balances, recent transactions and share prices. You can also visit blackrock.com for more information.

Automatic Investment Plans

Investor class shareholders who want to invest regularly can arrange to have $50 or more automatically deducted from their checking or savings account and invested in any of the BlackRock funds.

Systematic Withdrawal Plans

Investor class shareholders can establish a systematic withdrawal plan and receive periodic payments of $50 or more from their BlackRock funds, as long as their account balance is at least $10,000.

Retirement Plans

Shareholders may make investments in conjunction with Traditional, Rollover, Roth, Coverdell, Simple IRAs, SEP IRAs and 403(b) Plans.

 

 

A D D I T I O N A L   I N F O R M A T I O N

  111


Additional Information  (continued)

 

BlackRock Privacy Principles

BlackRock is committed to maintaining the privacy of its current and former fund investors and individual clients (collectively, “Clients”) and to safeguarding their non-public personal information. The following information is provided to help you understand what personal information BlackRock collects, how we protect that information and why in certain cases we share such information with select parties.

If you are located in a jurisdiction where specific laws, rules or regulations require BlackRock to provide you with additional or different privacy-related rights beyond what is set forth below, then BlackRock will comply with those specific laws, rules or regulations.

BlackRock obtains or verifies personal non-public information from and about you from different sources, including the following: (i) information we receive from you or, if applicable, your financial intermediary, on applications, forms or other documents; (ii) information about your transactions with us, our affiliates, or others; (iii) information we receive from a consumer reporting agency; and (iv) from visits to our websites.

BlackRock does not sell or disclose to non-affiliated third parties any non-public personal information about its Clients, except as permitted by law or as is necessary to respond to regulatory requests or to service Client accounts. These non-affiliated third parties are required to protect the confidentiality and security of this information and to use it only for its intended purpose.

We may share information with our affiliates to service your account or to provide you with information about other BlackRock products or services that may be of interest to you. In addition, BlackRock restricts access to non-public personal information about its Clients to those BlackRock employees with a legitimate business need for the information. BlackRock maintains physical, electronic and procedural safeguards that are designed to protect the non-public personal information of its Clients, including procedures relating to the proper storage and disposal of such information.

Fund and Service Providers

 

Investment Adviser

BlackRock Advisors, LLC

Wilmington, DE 19809

Accounting Agent and Custodian

State Street Bank and Trust Company

Boston, MA 02111

Transfer Agent

BNY Mellon Investment Servicing (US) Inc.

Wilmington, DE 19809

Distributor

BlackRock Investments, LLC

New York, NY 10022

Independent Registered Public Accounting Firm

Deloitte & Touche LLP

Boston, MA 02116

Legal Counsel

Willkie Farr & Gallagher LLP

New York, NY 10019

Address of the Funds

100 Bellevue Parkway

Wilmington, DE 19809

 

 

 

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Glossary of Terms Used in this Report

 

Portfolio Abbreviation
AGC    Assured Guaranty Corp.
AGM    Assured Guaranty Municipal Corp.
AGM-CR    AGM Insured Custodial Receipt
AMBAC    AMBAC Assurance Corp.
AMT    Alternative Minimum Tax
ARB    Airport Revenue Bonds
BAB    Build America Bond
BAM    Build America Mutual Assurance Co.
BAM-TCRS    Build America Mutual Assurance Co.- Transferable Custodial Receipts
BHAC-CR    Berkshire Hathaway Assurance Corp. - Custodian Receipt
CAB    Capital Appreciation Bonds
COP    Certificates of Participation
FHA    Federal Housing Administration
FHLMC    Federal Home Loan Mortgage Corp.
FNMA    Federal National Mortgage Association
GNMA    Government National Mortgage Association
GO    General Obligation Bonds
GTD    GTD Guaranteed
HUD SECT 8    U.S. Department of Housing and Urban Development Section 8
M/F    Multi-Family
NPFGC    National Public Finance Guarantee Corp.
PSF    Permanent School Fund
PSF-GTD    Permanent School Fund Guaranteed
Q-SBLF    Qualified School Bond Loan Fund
RB    Revenue Bond
S/F    Single-Family
SAB    Special Assessment Bonds
SAP    Subject to Appropriations
SAW    State Aid Withholding
SCH BD RES FD    School Board Resolution Fund
SONYMA    State of New York Mortgage Agency
ST    Special Tax
TA    Tax Allocation
VRDN    Variable Rate Demand Note

 

 

G L O S S A R Y   O F   T E R M S   U S E D   I N   T H I S   R E P O R T

  113


 

 

 

 

Want to know more?

blackrock.com | 800-441-7762

This report is intended for current holders. It is not authorized for use as an offer of sale or a solicitation of an offer to buy shares of the Funds unless preceded or accompanied by the Funds’ current prospectus. Past performance results shown in this report should not be considered a representation of future performance. Investment returns and principal value of shares will fluctuate so that shares, when redeemed, may be worth more or less than their original cost. Statements and other information herein are as dated and are subject to change.

MUNI4-11/22-SAR

 

 

 

LOGO

   LOGO


(b) Not Applicable

 

Item 2 –

Code of Ethics – Not Applicable to this semi-annual report

 

Item 3 –

Audit Committee Financial Expert – Not Applicable to this semi-annual report

 

Item 4 –

Principal Accountant Fees and Services – Not Applicable to this semi-annual report

 

Item 5 –

Audit Committee of Listed Registrant – Not Applicable

 

Item 6 –

Investments

(a) The registrant’s Schedule of Investments is included as part of the Report to Stockholders filed under Item 1(a) of this Form.

(b) Not Applicable due to no such divestments during the semi-annual period covered since the previous Form N-CSR filing.

 

Item 7 –

Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies – Not Applicable

 

Item 8 –

Portfolio Managers of Closed-End Management Investment Companies – Not Applicable

 

Item 9 –

Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers – Not Applicable

 

Item 10 –

Submission of Matters to a Vote of Security Holders – There have been no material changes to these procedures.

 

Item 11 –

Controls and Procedures

(a) The registrant’s principal executive and principal financial officers, or persons performing similar functions, have concluded that the registrant’s disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940, as amended (the “1940 Act”)) are effective as of a date within 90 days of the filing of this report based on the evaluation of these controls and procedures required by Rule 30a-3(b) under the 1940 Act and Rule 15d-15(b) under the Securities Exchange Act of 1934, as amended.

(b) There were no changes in the registrant’s internal control over financial reporting (as defined in Rule 30a-3(d) under the 1940 Act) that occurred during the period covered by this report that have materially affected, or are reasonably likely to materially affect, the registrant’s internal control over financial reporting.

 

Item 12 –

Disclosure of Securities Lending Activities for Closed-End Management Investment Companies – Not Applicable

 

Item 13 –

Exhibits attached hereto

(a)(1) Code of Ethics – Not Applicable to this semi-annual report

(a)(2) Section 302 Certifications are attached

(a)(3) Any written solicitation to purchase securities under Rule 23c-1 – Not Applicable

(a)(4) Change in Registrant’s independent public accountant – Not Applicable

(b) Section 906 Certifications are attached


Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

BlackRock Municipal Bond Fund, Inc.

 

  By:     

/s/ John M. Perlowski                            

       John M. Perlowski
       Chief Executive Officer (principal executive officer) of
       BlackRock Municipal Bond Fund, Inc.

Date: January 20, 2023

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

 

  By:     

/s/ John M. Perlowski                            

       John M. Perlowski
       Chief Executive Officer (principal executive officer) of
       BlackRock Municipal Bond Fund, Inc.

Date: January 20, 2023

 

  By:     

/s/ Trent Walker                            

       Trent Walker
       Chief Financial Officer (principal financial officer) of
       BlackRock Municipal Bond Fund, Inc.

Date: January 20, 2023


ATTACHMENTS / EXHIBITS

ATTACHMENTS / EXHIBITS

CERTIFICATIONS PURSUANT TO SECTION 302

CERTIFICATION PURSUANT TO SECTION 906